Help with damp and best course of action with wall

[Joswat1234]

The window seal next to a wall we want to paint has deteriorated and caused damp. After lifting off the old layer of gold wallpaper, I noticed that the wall was bulging in the corner so I started to pick at it and now it looks like there may be another layer of wallpaper against the concrete (covered with a layer of paint). Should I leave it now and paint over or should I rip up all of what looks to be paper from the rest of the wall (note the rest of the wall is in great condition)?

[B4Less]

If there is damp you should remove all of it and let the wall dry out over a number of days. Then when the wall is completely dry you can go about finishing it with whatever finish you wish. Also, make sure the seal is replaced and working correctly before you try to finish the wall.