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If you look closely at the first image, you can see what looks like white spots. I suspect these are pits where the wood in that area is soft.

Chris-

A while back I bought a koa set on eBay which the seller described as having "peanut shell", which is apparently the same thing as your seller's "spot rot". The little white spots are indeed soft; the wood seems suitable for a novice build, but I will have to fill these spots before finishing- I'm thinking CA, or maybe epoxy.

Chris

Chris thin CA would be better as it will penetrate deeper. You can use epoxy for pore filler.
It is the start of decay but should be fine. One question I have for you is "where will this piece reach 6% mc besides the Sahara"

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Chris,
That is too bad as it looks like a nice piece of wood. The "spot rot" looks like it goes all the way through.
20% EMC is about the cut off for further spalting or mold growth, etc. so I wouldn't worry about that aspect.

Chris after reading your posts over the last few years I must say you have one of the worst cases of wood lust/ WAS I have ever seen. You seem to be like a bird dog on wood, always sniffing out interesting stuff. Too bad I don't live closer to you so I could get some of the spill over.
I am mostly cured although I have to go to meetings and we all know one is never really cured.
This is where I like to quote the King of wood whores, Jim Krenov. "Buy all the good wood you can afford and then buy some more."
Link

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Cut to size.....Beat to fit.....Paint to match.

I have a (free from a friend) Brazilian rosewood set with similar spots of rot. I did a bit of experimenting with thin CA & West system 105 / 207 epoxy to harden & stabilize the areas.
The spots were still visible after treatment, but not horribly.
I haven't decided whether I will use the wood or not. I'm leaning towards not. I'm sure the spots would show after finishing... It's one of those things I would have to EXPLAIN to prospective buyers. "Oh, it's just a bit of dry rot." doesn't sound like something I'd like to say to someone willing to write a big cheque.
Once the wood is dried, the rot will stop, so you don't need to fret about the condition getting worse. The little rot critters need moisture to survive.

John's comment piqued my interest, so I just tested a bunch of wood in my dry room (kept between 42% & 48% RH all the time). Every piece registered 6% or less on the meter... And I live on the rainy West Coast of Canada. Didn't want to shoot you down John, but 6% MC is fairly easy to achieve with decent humidity control & time.