Getting rid of the mouldy carpet was clearly the right thing to do. I would caution that digging any further down, though, is probably the wrong choice. Follow the advice above about sealing it.
Of course there is damp below the subfloor. It’s the ground; the ground is damp. The asphalt that you have there is separating you from the damp ground under your house, and I don’t believe there is any indication that it has failed in any way.
Of course there is damp below the subfloor. It’s the ground; the ground is damp. The asphalt that you have there is separating you from the damp ground under your house, and I don’t believe there is any indication that it has failed in any way.

