The cement sheath-formation interface is a weak link in wellbore isolation systems, which is prone to the failure of sealing integrity during fracturing, affecting the fracturing effect, and wellbore safety. In this study, we establish a new model to evaluate the failure mode and crack propagation of cement sheath-formation interface. Using the proposed model, we predicted the propagation direction and length of the interface and zigzag cracks caused by the interface stress, fracturing load, and stress intensity factor (SIF) under temperature and pressure in the shale oil well X in the eastern China oil field. The prediction results were consistent with the distribution law of measured microseismic events. In addition, we analyzed the influence of the internal casing pressure, mechanical properties of cement sheath, and formation on the sealing integrity failure and cracks. At the same time, we discussed the influence of these mechanical properties on the propagation length of interface and zigzag cracks and the propagation direction of the zigzag crack in detail, and proposed the optimal mechanical properties design to avoid the crack propagating to the cement sheath and causing its failure. The results can provide effective guidance for sealing integrity prediction and cement sheath mechanical performance design.