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Several research studies have investigated the degradation of BaTiO3-based dielectric capacitor materials, focusing on the impact of composition, defect chemistry, and microstructural design to limit the electromigration of oxygen vacancies under electric fields at finite temperatures. Electromigration can be a dominant mechanism that controls failure rates in the individual multilayer ceramic capacitor (MLCC) components in testing the reliability of failures with highly accelerated lifetime testing (HALT) to determine the mean time to failure of MLCCs surface mounted onto printed circuit boards (PCBs). Conventional assumptions often consider these failures as independent, with no interaction between components on the PCB. However, this study employs a Physics of Failure (PoF) approach to closely examine transient degradation and its impact on MLCC reliability, emphasizing thermal crosstalk and its influence on dependent and independent failure rates. Finite element analysis thermal modeling and infrared thermography were used to assess the impact of circuit layout and component spacing on heat dissipation and thermal crosstalk under various electrical stress conditions. The study distinguishes between dependent and independent failures under a HALT, quantified through a β′ factor reflecting common cause failures due to thermal crosstalk. Through a series of experimental and statistical analyses, the β′ factor is evaluated with respect to temperature, voltage, and component spacing. These insights highlight the importance of understanding the nature of the data in reliability testing of MLCCs and optimizing the layout design of high-density circuits to mitigate dependent failures, improving overall reliability and informing better design and packaging strategies.