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Unfortunately it's not an obvious gap in paint or sealant, as it looks likely that the rot pre-dates the current decoration.
Which is not surprising considering the other things going on in this place.
I'll be following @bq's suggestion & filling it with epoxy for the moment.
Eventually, I'll need to replace it, as I'm repairing the stone sill & building up a runoff on it*, meaning that the wood needs to be replaced anyway.
* It's pooling water at the moment - no doubt adding to the existing problems caused by any leaky surrounds.
NotThamesWater
Agree with BQ, what I would add is give your sealant round the window a double check, if the water is getting in somewhere round the window frame should be easy enough to spot and fill in.