I dont think Chaos Flesh will work with that, its a tetrahedra simulation and pretty authored in editor, dont think it can be permanent or if u can even set the stiffness properly, so that wont work for a car destruction game.
But doing it like Wreckfest and BeamNG or anything similar really is not an easy task, not sure about Wreckfest but BeamNG is using spring mass system.
But spring mass systems are active, that means it needs constantly to calculate physics forces and apply them to bodies “cage” build from string mass “nodes and beams” to not collapse and keep it rigid, if i remember BeamNG runs at 2000Hz, probably u can make it much lower, but its interesting bit of info.
And also the car is not a single soft mesh, but multiple connected.
Why it needs to be a soft mesh like? Cuz u need to somehow accurately propagate damage further from the point of impact thru the surface and pushing a mass point that then pushes other mass points thru a node of some length is very good for that.
And to do that u would need to probably make some custom physics calculation for that as no way u can modify chaos or Flesh to do that.
But thats realistically the only way, u need something to gather forces from the impact, apply that forces to the meshes so they deform and also deform the collision shapes to the mesh shape after deform, and u need the system to be permanent after some force threshold so that it wont come back if hit hard enough, more like springs with a max limit after which it wont come back.
So at least u need some kind of spring mass system, kinda like “lattice” modifier, and a procedural mesh modify system for the deforms and this will need to probably be c++ only.
So u need to think carefully if u really up for the task, its not easy. There is even open source project from BeamNG creators Rigs of Rods that is old, but implements all of this in c++, u can analyse it.
Or u can fake it like the matrix vehicles are doing, but it wont be ofc as dynamic and unpredictable as those games.