rotted wood on exterior wall

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Hi all,
This past weekend, we ripped up our cement sidewalks and a cement/brick landing off the side of our house that was about 4' high x 3' wide. It was built in part of an addition on the back of the house (a walk-out basement) with exterior wood-framed walls. I found that behind this landing the structural wood had rotted out.

I'm wondering if I can reframe this portion with Pressure treated 2x6 and face it with exterior plywood. The problem I have is that this wood will be against the existing stone/cement foundation on one side and sitting at ground level. Should I also flash along the bottom of the plywood before installing Tyvek and the vinyl siding?
thanks for your help.