Certain leathers can, other leathers do not. The old thoughts that veg tan is safe and chrome tanned leather can cause corrosion is a wives tale as their are leathers of both types that will cause corrosion and their leathers of both types that won't. This has been discussed at great length multiple times in the past here but a lil refresher won't hurt.
I built this holster many years ago. Its a prototype of my Rangeflap Holster.I think it was the second one I ever did.
It is completely lined with a chrome tanned, oil tan leather, a type of chap leather. For over a decade this Ruger Old Model Vaquero lived in this holster.
I kept this gun loaded and in the holster ready to be grabbed at a moments notice in case something happened at the ranch and I had to deal with an injured or downed cow or a horse. While there is certainly some holster wear there is no corrosion or rusting on this handgun as you can see in the pic.
While this Smith and Wesson Mod 36 didn't live in the holster, during the summer time it was a primary carry at the ranch for years. While this handgun shows even more holster wear as it is a much older gun and I have carried it in this holster and several others since 1983 when I traded for it.
This lil revolver to this day is often my primary carry gun at the ranch in the summertime. In Cowboyese a snubbie revolver is called a snake gun. They handle snake shot very well so the first round is snake shot and the rest are normal bullets.
Then on the other hand I kept this cheap ass but obvious veg tan leather cartridge belt loaded up. This was a common commercial brand (I don't make cartridge belts). The leather was very heavily oiled, good right? Not so much:
So anyhoo.
Leather can attract moisture in certain conditions and so I never recommend storing a knife in a sheath. That being said I do all the time with lots of knives and I don't have any problems but I do live in a semi arid climate.
Some thoughts on knife protection as a knife maker as well as a sheath maker. While I use to use Ren Wax years ago I quit it. Got to thinking lets see, Ren Wax is designed to preserve things that are in a optimum climate controlled situation and are handled literally with white gloves. We call these places museums. Not how I use my knives, nor pistols. Years ago, like 15 years ago I switched to Mother's Carnauba Car Wax. Lets see, its designed to protect metal in hot sun, freezing conditions, rain, snow, mud, sleet, dust high winds etc, ya name it. No climate control or white gloves in real life. Every knife I make has 2 or 3 coats of this wax on it before it ships out of this rancho. When I do a show it tends to be at cowboy events like a rodeo, or a roping etc. As a vendor you are usually outside and it is gonna be dusty, windy perhaps and just not the sterile conditions of a knife show inside some conference room at a motel. Just ain't. I can put my stock away and when I set up the booth next day clean off the knives easily with out causing damage. Nichole and I at the last show we did, our local rodeo:
Or another show and while in a tent still on gravel and very dusty:
Anyhoo. I would say your experience is not typical. Can you post pics of the knives and the sheaths so we can have a look see and figure something out?