My lawn is infected? Help!

Hi, 1st week of September I noticed birds started digging at my lawn and causing a mess (only at the front of the lawn). This happened for a few days (they’d come morning and evening daily). I raked up the mess and then purchased Nematodes (after research said it was cause of leather jackets / pests). The Nematodes was mixed with water as per instructions and sprinkled on the infected area. The lawn was watered daily using a sprinkler. For 2 weeks, birds stopped coming so I thought it must be working. However, they’ve started to dig again although they’re not coming daily anymore. It seems to be at random now.

Look at the state of the lawn. Lots of patches where the soil is very visible 😢

How do I bring it back to life? Do I need another round of Nematodes? Is the grass basically dead / infected? Does the soil need to be completely removed and completely replaced with new soil + turf?

The lawn is only 2 years old 😫 I have no clue on this stuff. Help? Thank you so much in advance!