Oakum traditional caulking

Hi all, first time posting here! I removed vinyl siding from my 1850s house and I'm in the planning process to try and restore, using as many traditional methods and materials as possible. I think that will be best for the health of the home and long term maintenance. While I was poking around the house, I found what seems to me like very old oakum/lime covered pieces- see photo (stuck to the skirting board)

I was intending on using the oakum as a backer rod between sill plate and fill/repoint a wall with lime mortar. I was advised not to put lime mortar (or any for that matter) directly against wood- even though I've done this previously- thinking the lime would be breathable and so this isn't a real issue. I could use oakum for part of it but in one spot a 10 inch depth can be reached and the underside of the wood sill is exposed and I'm not sure what material could used as a buffer under the sill before adding stone/mortar. Thoughts on this?

**Does anyone have a good quality, competitively priced source for oakum? What covering would you suggest be used with this for different applications- I've read things about using in conjunction with linseed oil, lime putty, or just adding lime mortar against the raw oakum.

I have an addition portion of the house circa 1900-1920 (not real sure) and at some point they added what I believe is called a "watertable" to the exterior in front of the cobblestone wall (that is at and below grade). Then there's what looks like a "fill" type of concrete between wood forms above grade a few feet above the clapboards (an interior pic shows what I mean- the white you see is lime wash). On the exterior, I removed disintegrating concrete and a piece of the watertable that was cracked clean through. In the photo, the top of my hand is touching the wood sill that felt damp (we had 2 weeks of solid rain). Before I fill with ecologic lime mortar, I need to address the joint along the sill plate- thinking I'd pack with oakum....the questions is do I need to "treat' the oakum with anything or can I just put the limemortar up against it?

Also, does anyone have any tips for removing old "great stuff' orange spray foam from wood? Early on in my old home ownership days I made the mistake of using it in places where I would now want to use oakum.

Thanks so much!

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