Sill plates are treated, and although they dont look it, they were solid as can be. All of the studs were non treated to begin with, I put treated back in just because. There is a steel beam supporting the floor joist above the garage that bears at that space, hence all of the lumber. I never put a counter flashing in, and never caulked the siding to the jamb, letting water in. The bugs are after water not wood. They will eat the wood fibres to get the moisture out. If you keep the wood dry = no bugs.
You guys would not believe how much rot repair we have replaced for customers in the last couple of years. I was kidding around and said we should change our name to the rotten guys.
I just got a call yesterday for another termite repair job.