Just in replacing the studs and sole plate when in fact its load bearing.
You can do it by going one stud at a time and making sure its long enough to do some supporting. You might be able to go two studs at a time, if your careful. You should have to whallop it in place to actually allow it to do its job. The sole plate is another snafu.
First, replace all 2x4's with wolmanized pressure treated lumber.
I would then replace 2 feet of sole plate at a time. You will need a 22 remington stud shooter or a 90 degree 1/2 inch drill. These tools will allow you to anchor the sole plate to the concrete.
When you remove two studs, then quickly jam another 2x4 into the spot for support. cut the stud 1/2 inch longer and hammer in into place for temporary needs.
Do this until ALL rotten studs and sole plates are removed and replaced. When this is done, your work is almost over.
Now, install hardi backer material instead of drywall or green board. This stuff is great.
This is a condensed program, but you have quite a serious job ahead of you with these load bearing studs to remove and ESPECIALLY the sold plate.