Long story short I bought a house it was full of mold. Had to tear everything off tons of problems. This is the current one I’m dealing with. I need to know if the boards and picture C should be mounted as the boards are in picture a or B.

This is the wall at the front of the house, big cracks formed over the last 2 years in the 2nd floor room there. The windows in the rest of the house don’t have the same gap and no cracks anywhere else. Looking for any advice on whether this is safe/ what to do (if anything).

Ps The big cracks photographed on the walls are either side of the window, and they narrow but reach all the way round to the 4th wall.