Holes in plywood under old vinyl siding

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ldhale

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We are in the process of replacing our windows and vinyl siding; when we removed the siding on the north side of our house two sheets of the plywood underneath was completely covered with holes about the size of a dime. :(

There are also some spots with some sort of fungus growing on it. What do you think would cause this and when we replace the plywood what can we do to keep it from happening again?

Any help or suggestions would be greatly appreciated.
 
We are in the process of replacing our windows and vinyl siding; when we removed the siding on the north side of our house two sheets of the plywood underneath was completely covered with holes about the size of a dime. :(

There are also some spots with some sort of fungus growing on it. What do you think would cause this and when we replace the plywood what can we do to keep it from happening again?

Any help or suggestions would be greatly appreciated.

Are the holes man made or are they from rot? Does the wall have a house wrap on it? Remove any oppritunity for moisture to get on the plywood, wrap and seal any joints/seams in the moisture barrier.
 
Thanks for your help!

No the holes are not man made it looks chewed like some kind of insect maybe.

There was no house wrap but we will be putting it on after we replace the plywood.
 
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