I don't think any thing is "gnawing" at your siding. Looks like classic woodpecker damage to me.

I agree with kudzu9. We had the same problem here.

It is woodpeckers. Some people have had luck mounting an artificial owl to the house, but it should have a "bobblehead" or be moved fun time to time. Or, mylar strips, they sell them in the hardware store for this purpose.

Good luck. I’ve had problems like this off and on for 30 years with different houses. And bear in mind that woodpeckers are protected federally, so trapping or shooting one can result in big fines or jail time.

Who knew! Are they going for something under the siding, like bugs, or do they just like the wood?

They are looking for bugs. Sometimes there are bugs, and sometimes they are just "exploring."

We had ants. We sprayed the ants, repaired and painted the trim he destroyed and he never came back.