There appear to be gaps between bricks where there should be mortar.
Long term leaks can wash lime mortar away.
Keep digging until you can see the damage. It will be worst near the water. You can wash out the mud and dirt with a hosepipe and repack with a stiff sand and cement mix. You may find the source when you look. Clay gullies and drains beside an old house are usually cracked and leaking.
The damage to lime mortar is an indication of a long term leak. Not a cause. It can conveniently be repaired during or after digging to find the cause.
Yeah, I may have misunderstood your point. I just wanted to emphasise the importance of solving the actual problem rather than worrying about the masonry at this point. It's not going to fall down any time soon.
These things can take years to work out. We had a perched water table at our last house. I spent days of labour and £1000s sorting surface drainage, rainwater, sewage and lots else. Turned out next door's downpipe was pouring directly onto the ground and heading our way underground. I badgered them, they reluctantly fixed it while complaining all the way and saying I was talking rubbish, the problem went away.
On a similar note, I was once digging out a fractured gulley and clay pipe, when the hole I was standing in filled with warm soapy water. The neighbours had just pulled their bath plug. They had the same kind of break.
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