House foundation moisture

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huma

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Hello forum members!
There is one area of the house foundation that always have a musty/wet smell after rains and it seems like this smell also seeps into a powder room behind the wall.
I don't think that source of the visible moisture is from the inside as the drywall on the inside of this area doesn't have any visible moisture signs and I also checked it with moisture meter and it was dry but the musty smell does occur inside as well.
  • The gray material/paint is kind of thick and have some flex to it, what is that material anyway?
  • To fix that should I peel the flaking paint, let it dry and then repaint it to seal the concrete foundation? Should it do the trick?
 

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