Great question — answering as the UphillTech team:
This type of construction is common in my area of the country. The construction itself is not wrong or "bad", it's the outside grading that is causing problems. (You already know that) The top priority should be regrading to have the ground start a minimum of 4 inches below the top of the slab. In Fla, where I'm at, the grade starts 4 inches minium below the garage floor that is 4 inches below the living area, so the ground is 8 inches below the top of the living area slab. It is known here that anything that is much less will cause problems with wood rot, insects and termites. Correct the grade and you will correct the interior problems. Your plan to use house wrap and fibre cement based...
Full answer by RMDman: https://diy.stackexchange.com/a/330049 (CC BY-SA 4.0).
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