The best way is to see doctor for this scenario, nobody on the Internet can give u medical advice. It might be due to this balm but also depends on alot other factors like have u fed baby differently as well? Or u r still bf-ing n u possibly had ate some high allergen food or had intro different solids to baby, which baby can have allergy to. Or had changed the FM. Some products r not suitable for babies. Anyway babies can be v sensitive, even to dust. U can ask Pd to do prick test if u suspect of allergy.
Most logical explanation will be: Your baby is allergic. Stop using and see if the rashes goes away. If it goes away, then you can probably giveaway the balm or use on ur own body. 😊 Mean time I think best to just use plain water and mild soap only, and no additional products in case it aggravates the rashes. Alternatively, can see PD for special creams.
Try bringing baby to your PD for some ointment. If baby is experiencing some discomfort try keeping the skin cool and dry. I’d use calamine lotion but I’m worried it might cause another reaction.
Please stop using, and please see a PD. Not everyone is suitable for all products.