I have an exterior stucco siding. The other day it rained quite a bit and we got water in our house. I noticed at the bottom of our stucco wall which sits about 6-8 inches off the foundation that there was a metal "flashing" with holes drilled in and there were also gaps between it and the stuco wall. I sealed it with that foam expanding stuff AND black "tar" sealant in an effort to keep water from getting in the house.

Now I realize I need to take some measures to keep water away but we built a flower bed and now the ground level is significanly closer to the wall than previously. I am not sure I can ever completely keep water from getting to the level of the stuco wall. Additionally, ants were coming in from these gaps in the wall and getting into the house.

?Is it bad that I covered these holes? What damage will that cause? is that worse than getting water in the house?

Help
Picture attached shows where we tarred the metal lathe. For reference the top of the black is the bottom of the wall and then the majority of the black tar is on the foundation and you can see the dirt is about 4 inches from the bottom of the stuco wall

There should be no openings for venting or anything else at that level of siding. If there is another layer of siding under the stucco, it should be flashed properly, then the stucco would need to counter flash this. If that is your only layer of siding, masking tape and a thicker grade of asphalt would dress it up a bit. Cover that entire area all the way around the house. Bury it after, if you have the room. Vent stucco siding at the top of the wall. It will intake from inside the house.