An area of wet rot to a 1930s window appears to be the result of either water ingress past the putty or insufficient primer used when painting a previous repair. As you can see I made a cut out of the effected area leaving in the piece that has the interior moulding it may have been a whole new window if the wet rot had eaten away at the moulding.
A new piece was then added and fastened with glue and screws, timber plugs were used to plug the screw holes. Not entirely necessary but a far more professional finish. Once dry the window was re-hung and primed.