from painting alot of houses ,, trim, siding etc.....once moisture has gottin into the wood , it needs to get out, an most of the time it wants to come out , or try to come out through the paint or siding, thus lifting the paint off the wood in doing so...trim that was back primed before being put on the house will last almost twice as long before needing a paint job....now apply this method to your plugs wood,,,,water goes in the holes, water gets sucked into the wood,,goes through the wood an gets stuck under the paint,,water wants out..off pops your paint.
jigman..I have an ayc plug that has done the same thing as yours,,it's not a nice site to see..it's never seen water, but I think you'll find it's has more to do with the pitch/sap in the wood, my nice yellow plug is now poop brown with what looks like a water snake just under the finish.
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