We weren't sure which installation guide was followed, but your image doesn't show obvious fixings. Boral have a comprehensive cladding guide which includes the advice "Fixing is to use two fixings per crossing". ie. two nails or screws through the face at each point where the cladding crosses a batten. We consider this to be standard industry practice.
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Some years ago there was an Australian Standard titled Types of timber surfaces, published as AS 1728-1975, but it was withdrawn in 2017. The only current definition we can refer you to is in Australian/New Zealand Standard 4491:1997 titled Timber - Glossary of terms in timber-related Standards. "Dressed Timber" is defined as "Timber finished to a smooth surface on one or more surfaces". The term DAR means dressed all round, ie. smooth on all surfaces. In our opinion the image attached to your question does not present as timber "smooth on all surfaces".
Our Timber Service Life Design Guide will give you the probable lifespan of a merbau deck in Melbourne. It's number 5 in our series of Technical Design Guides, and can be downloaded free of charge from our website via this link https://www.woodsolutions.com.au/publications. Merbau is rated Durability Class 1 outdoors above ground, and Melbourne is in Climate Zone C according to the Decay Hazard map in the Guide.
This guide covers lightweight timber-framing applications and mass timber construction. It has been written to help designers make informed choices in designing timber connectors by understanding what factors influence the capacity or degradation of the connection.
Several different fungi have an orange fruiting body but it's not necessary to know exactly what it is - all feed on damp wood and all can be treated in the same way. It might be best to discard the glazing bead and install a new one, preferably of a more durable timber than meranti. Before treating the window frame itself it must be allowed to dry so the treatment will be absorbed into the wood. If you have access to creosote it is a very effective anti-fungal treatment but has a strong odour and is a skin irritant, also it's not readily available as a DIY product.
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