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Water damage to lounge from exterior concrete block wall

House Built --- (monolithic cladding; not assessed as a leaky building). Somehow a concrete block wall has lost water tightness. The lounge (2.4m stud) has become quite damp and mould is forming in the corner. Corner gib is swelling, and about 3.5m on one side and 2m on the other of skirting boards is also swelling; carpet is damp. It's a bit of a problem - perhaps more than a bit. In the pic, red lines are obvious damage, yellow indicates approx extent that feels too damp. Need an assessment of extent of damage, and viability of replacing like for like wall panelling, then replace-repair framing and interior damage to gib-on, and water-tightness repair to the block wall. PS: the block wall has an access cavity between it and the hill terrace face - but there's not a lot of space there....