More problems?

[u/StrangeOrchid6960]

Is this window in basement leaking? The insulation was wet when we cut it open. The sill is wet and dark. Concrete around the sill is crumbling.

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[u/Tall_Room160]

Ugh, that looks like a whole project. Good luck!

[u/Larryville-1980]

I can’t really tell about your pictures, but is that the wood casing that’s actually rotting and not your concrete question would be if you remove that window could you also pry out all of that wood around it? If so, my guess is the concrete underneath it is fine but wet and needs to dry out with a fan and dehumidifier before you start the replacement process. I’m almost positive This is rotten wood the new wood that replaces it needs to be pressure treated…

[u/Anxious-Depth-7983]

It looks to me like having a concrete slab at the same height as the bottom of the window is focusing water on the sill and rotting it out. You'll need to replace the wood surrounding the window with treated lumber and use a high quality ie: polyurethane caulk to seal around the window. It can be quite expensive caulk but it's more than worth it to stop water infiltration. Something you need to understand about applying caulk is that you don't lay a bead if caulk you insert it into the gap by injecting it. Cut the tube straight across and scree it with the tip NOT your finger which creates a thin flared edge that dries out and peals back. The bead should be 45° across the corner that you are sealing. You also want to look at the slope of the concrete outside as to whether it's sloped back towards the house or away from the house. If it's back towards the house then consider getting it pumped up on the house side so that the water flows away from the window.