It looks like normal interior shedding of needles. Conifers don't keep their needles forever. This is the time of year that they shed their needles. My conifers are doing the same thing.

A spruce with that much resin on the outside is struggling and I have never seen one in that state recover

It's probably best to have an arborist check onsite or contact your county extension service, but this tree shows every indication of cytospora canker, a common fungal disease in spruces when they have experienced stress such as drought or excessive wetness. The "white paint strips" are the result of oozing sap that has dried. The browning areas are definitely not the normal shedding of needles. This is a further symptom of cytospora canker but may indicate that your tree also has one of the needle cast fungus infections. Most likely, the browning is caused by the cytospora.

I am not aware of any cure for cytospora canker, but trees can live with it for a long time if cared for. That would mean pruning out dead branches, including the areas with browned out needles, watering in drought conditions, eliminating the grass near the trunk base and applying mulch.

Thank you all for the responses. I shall research cytospora canker. If that is the issue and if it can spread to nearby trees, I guess I’ll have to have it taken down

Make sure the tree isn’t buried too deeply. I don’t see the flare of the trunk. And replace a good hour foot diameter circle of turf with mulch.