i'm guessing the source of that mosfet could dip 100 volts below ground on that breadboard, the leakage inductance between all the active components (input cap, mosfet, diode)... all that leakage inductance probably stores 100 times as much energy as does the combined 1-10 nf capacitance of the mosfet and diode.
edit: and op isn't even using the two power supply rails properly, one is used for ground, the power is on the other side of the board.
it certainly isn't impossible to get this circuit working on that breadboard, but it has to be done right.
the mosfet and the diode should be right next to each other, offset by one pin, then wrap the power and ground out to the rail right beside them, and put film caps on either side of those connections.
then put a capacitor in front of the mosfet and diode and stick the leads down the same lines of holes, that way you can get a combined length of about half an inch between all three caps. the inductor and output capacitor don't need low inductance paths btw, except to clean up the output ripple, which isn't important yet.