It's a lot easier to scrape, clean and repaint a block wall in July when your moisture in the ground is much lower.Another selling comment - make sure to disclose the seepage on the property condition report.  

This is easier to maintain than messing with paint due to high moisture / humidity issues. 

An engineered wood floor of good quality( not the box store 5/16 garbage) would be a good choice and handle the temperature and moisture extremes better.

It would be my guess the vinyl hasn't been keeping the water out either.Bottom line is that no siding is going to be completely waterproof and you want to do your best to keep any source of moisture away from the home.  

However, it is a potential weak spot as it is very susceptible to moisture damage and there is a lack of accessibility to make any repairs which is why the GSE's will not underwrite them.  

There appears to be some stains indicating seepage.We just did this kind of foundation repair on a house with steel beams 6 ft oc with an interior moisture barrier and an interior drainage tile with a sump.  

Tile would be great, but possibly the noisiest option (impact noise) and the kitchen is right in the middle of the floor plan.I treated the sub floor to reduce noise, but am now considering laminate or even vinyl (due to better moisture resiliency).Is tile going to be much louder than the current existing sub floor (at least in terms of impact noise).

Obviously it rains a lot here and you can definitely smell the moisture smell when you first walk in.

Metro areas which do not experience hard freezes or significant moisture.

I believe that this can lead to termites and extensive moisture damage in the structure of the property.