“Breaks down” just means our equations don’t know what to say about a situation.
It doesn’t that any particular phenomena we understand today will break down. Just we will be able to see richer behavior, that has been there all along, than our models cover today. And so be able to understand more conditions than we do today. And perhaps new capabilities to engineer things than we have today.
Obviously quantum field theory, as it exists today, breaks down at the Planck distance too, since it can’t tell us what is happening at smaller distances either.
This isn’t the least bit controversial or surprising. It just means that even with both theories, we can’t explain everything yet.
When we do have an accurate theory of the fine structure of space and time, it will also be a theory of the fine structure of fields. Since space-time is integral to both theories.
It may even be the long sought after unification.
But for distances much larger than the Plank distance, the fine structure theory will still simplify into the GR and QFT we have today.
Just as GR under many conditions we encounter every day, further simplifies to Newton’s Law of Gravity.