whether dry rotted or rotted by H2O, you will need to get rid of the rotton studs. Try replacing one at a time - it won't make much of a difference. Besides - when in doubt, build more.
Questions: 1st or 2nd floor? Age? 2x4 or 2x6?
I have encountered much rot over the last 20 years, and you really should get rid of all rotton wood. Its also important to take a look above for possible sag - if its an older home.
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