The issue with isopropanol peroxide formation is that exposing it to air – even when just using it, like when you’re cleaning parts – starts the process. The air in the head space of your containers is also enough to form them over time. You don’t necessarily need to see solids in the containers for it to be dangerous, since they’ll crystallize out as you concentrate the solution during distillation.

It’s also a numbers game. It probably won’t explode the first time you do it. But there’s a chance each time. Do it enough, and you’ll have an incident.

There are chemical reductants that can clear peroxides. For industrial scale isopropanol distillation, I’m not sure what they use. It may be that they just never distill down to the point that peroxides concentrate to a dangerous level.