Did the tree come with the house or did you plant it? Some of the home centers and nurseries around here actually have a 1 year warranty, you might actually be able to return it!
I dont know about Oak Wilt...
The tree is being starved of water would be my guess. I am guessing that this is being caused by the messed up bark near the base. What caused the bark to come loose, I don't know.
Good idea about keeping the muck volcano in check. Yes, that can cause issues.
I would water it every day if possible, at least a few days a week, and see what happens. If by next spring it doesnt improve then replace it.
If you want instant gratification then replace it now.