Damaged Exterior Wood
This is an older house about ready to be demolished to make way
for a new medical center. There's no roof edge metal underneath the
roofing to drain the water onto the facia board off of the building.
There is a good chance that is why the facia board is damaged.
You can see this piece of facia board is in dire need of replacement and if you look closely you can see a large knot where the arrow on the left is pointing to. The piece of facia board to the left has already been replaced and repainted sometime ago.
The arrow below to the right is pointing to what looks like wood filler or bondo. If you are doing a home inspection on this house all that would be required is to stick a sharp object like an awl into the siding to verify whether it is wood with paint damage or filler.