If you invite water in, it will come and stay.
Water must be controlled. Water can be THE KILLER of houses.
The damage happens slowly and insidiously. And if changes are not made the damage will become extensive.
Flashing is present here but insufficiently applied.
A special form of flashing is missing.
Called "kick-out flashing," or "diverter flashing," there should be an angled member of flashing just at the bottom of this roof to divert water away from the stone and into the gutter.
Perhaps the installer did not know how to do it because kick-out flashing should have been installed here by code.
A second mistake is that the gutter is touching the stone. There should be a separation of about 1".
Water is causing cracking in the stone, and getting through it. A lot of water is discharged from the roof above, and too close to the siding without the flashing diversion.
What would the result of all this be?
The only result it could be! Water gets in when it is invited, and will stay. And cause damage.
Fortunately this home inspection caught it and it can be repaired before further damage results.
This is the corner where the garage abuts the main house. So it is visible and accessible.
My recommendation: gutters and flashing must work together to control water. It must direct water from the roof in ways that allow it to be collected and removed so it does not come into the house. Then, and finally, water must be discharged away from the house so it does not become a heavy burden against the foundation. All of this is planned in advance by designers and installers, and different trades. Every trade needs to know its part in the job and do it right. In this case a very cheap and missing piece of diverter flashing was never applied, and the gutter was placed too close. Those are both trades that should know these basic installation techniques.