From what I've read, only mammals have the taste receptors to bind to capsaicin. Birds and insects literally cannot taste the chemical responsible for pepper burn. That's why capsaicin-based sprays and repellents are only effective on deer, rabbits, rodents, and.... people!

Don't have many trees around here so I can't comment on your wood lice problem. If they're a soft bodied insect like an aphid, Neem oil spray might help.

Seems very strange that wood lice, aka pill bugs, would be making holes in peppers. Any chance they are just taking advantage of another pest's initial damage?

Rodney