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Tricky to be sure, but at the bottom of the first pic the ply looks damp and the paint lifting.
The way it’s been installed doesn’t give a lot of confidence that all is well behind that ply.
I fear I’d be pulling off the ply. That way you can check there’s no water damage or ongoing leaks and then redo it all properly like TW’s and bluehuw’s.
It’s not a totally horrific job. You should get the ply off easily with a pry bar, cutting and fixing new board is a pretty straightforward DIY job if you’ve got a saw and a ruler and YouTube, then just a pro to skim it. Anything else is likely to end up a bit of a bodge on a bodge.
But if you can’t face that, yes - a multi tool. Cut it back further to allow for some beading to cover the inevitable wonky edge of the cut.
Is the first 12-15mm going to be plasterboard and plaster or is that sheet ply? If it's ply I'd be tempted to take the top 25mmish of it off and not cut into the beam, see how that sets them*, making good would be a good wood filler (right-hand top looks well off too but more like plaster there?!) . Standard disclaimer and I would be considered about their next problem if that was how they were left