Second opinion about rotting wood near the deck / siding

I’ve had 2 local contractors look at this. And they both suggested something very different.

When I first purchased the house, there were no gutters and the bottom of the sidings were rotted (pic4+5).

I removed siding to see (pic1-3)

One contractor told me the rim joist is solid and fine to leave alone. The main solution would be to get gutters. And I can replace bottom siding and coat with paint. He didn’t say anything about the deck other than it needing a power wash.

The second contractor said the rim joist looks terrible and suggested flashing and gutters. Then he said he wants demo the deck too.

My concern is the integrity of the rim joist and trying to save it. From the inside (see pic6+7). Is this rim joist beyond repair? Do I need to get it replaced? Looking for a permanent solution.

Thanks!