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This is what is on the roof. I guess there is a top on the cap. The daylight showing may be light from the opening at bottom of cap ?

This is what is on the roof.

Yes, it is single wall. I did cut off some of the wood around the pipe. See attached photo

It is OSB board. I guess the black is charring ?

Thanks for your comment. I don’t have a non contact thermometer yet, but the vent pipe is touching the sheathing, and the vent pipe gets pretty hot when burner is on. And the sheathing gets pretty warm near the vent pipe.

Thanks for your comment. I don’t feel any leaking air flow.

No the sheathing is not flaking off, but it is getting pretty warm around where the vent pipe is touching the sheathing

I noticed this in my attic recently. Is this a problem that needs to be corrected? Thanks in advance for any advice.