Termites? Oh no...........

Springfield, IL

Okay I was adding a small entry door to my garage (have lived at the place over 15 years) and had just cut a section of the wall out which used to be a window.
When I tipped the wall section out, it ripped off the concrete foundation and guess what was underneath- this very curious thing. Though nothing was visible inside the garage, a section under the foundation board was hollowed out and all this was there.

I didn't see anything moving, and the only insects I could see were a few large red things which appeared dead.... though it was awhile before I had had a good look.
Carpenter ants? Termites? Water rot.... Trying to figure out what is going on and how much of a danger this is......and then what should be done. Anyone recognize what this is?

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Minot, ND

Looks to me like a combination of rot and old insect damage. If there had been an active infestation of either termites or carpenter ants, you should have seen some of them when you tipped out that wall section. Just FYI, carpenter ant tunnels usually follow the grain of the wood and appear smooth/polished whereas termite tunnels can go cross-grain and may be partially clogged with their frass and/or other debris.

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