Fungi and dry rot will continue to spread even if moisture is not present.
Does vinyl rot.
Wood that gets wet can eventually develop rot mildew mold and or leaks.
Make a better choice.
That lifetime vinyl covering can droop and and warp pretty quickly.
Vinyl siding itself is water resistant just like any plastic product.
If vinyl siding is functioning as designed most surface rain water will run right off it.
Because the vinyl itself is unaffected you may not notice water infiltration or the issues that it causes rot mold and mildew until it s too late.
Vinyl siding does not keep water from getting behind.
Some vinyl siding companies will cover up damaged wood and side right over existing wood rot.
If you leave the rot in place it will spread and could eventually affect structural members or attract wood eating pests.
My house needs to either be painted or sided and i would rather side it but a couple of old timers have told me that since i live in a very humid area that moisture will get trapped between the vinyl siding and the wood siding and cause the house to rot undetectably.
Unlike wood and masonry vinyl siding presents its own breed of maintenance worries.
They will frame around rotted window sills and brick moldings cover up rotted trim etc.