Hello. I don't understand the meaning of this sentence (Grad geht's entzwei)

Hello. I don’t understand the meaning of this sentence (Grad geht’s entzwei)

It’s falling or breaking apart. Quite literally it translates as it’s going into two pieces.

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As RB79 said, “entzwei” means “into two parts, in half”. “Entzweigehen” is most often used in the general meaning of “fall to pieces”; “break down”.
However, maybe you find this sentence difficult partly because of the word “grad”? It can be a bit puzzling for a learner because if you look it up in a normal dictionary, you’ll find that it means “degree”. However, it’s often a slangish abbreviation of the word “gerade”, as seems to be the case in your example:

Grad geht’s entzwei = Gerade geht es entzwei: It is [gerade = right now, as we speak] falling to pieces.