The flaking bits of PTFE are bits of Teflon flaking off and are actually harmless and would pass through your digestive system unchanged.
PFOA was used in the manufacturing of Teflon and is a known carcinogen. There is no PFOA in the finished product.
Toss the pan. Replacements are generally inexpensive. I recommend a Teflon pan with a thick aluminum base and a coating on the outside. When the Teflon gets old and stops being non-stick, it's easy to toss it and replace it since its' so cheap.