Replace and Blueskin framing, get a PVC window installed... the pit is likely far too shallow and seems small for a window of this size, at least where I am from, good opportunity to add or replace weeping tile.

Outside foundation likely needs waterproof on a house that shows this kind of damage, not that they're necessarily related, but one is usually indicative of another in my experience...

Eavestrough issues could also be causing water buildup this close to the home, clogged downpipes or eaves. If your roof is old or you have trees in the area there is a good chance this needs attention also...