No, that's not OK. I suspect that may be the reason for any failures you are noticing.
It is essential that there is an airgap above the breather membrane. There will be micro-cracking of the render which means the back of it will be damp during rainfall. This dampness has no way of drying off if there is no air movement behind the render. The ply is on the wrong side of the frame, too. It should be on the inside. I'll have a little bet that there is no vapour barrier on the inside of this wall, so you would have the perfect combination of internal and external design errors causing interstitial condensation.
If it were me, I'd strip both the internal and external faces of the frame, assess whether sheathing board (ply or OSB) was actually necessary at all and if it was, fix it to the inside, not the outside. I would then fix a new breather membrane to the outside, directly to the frame, then counterbattens an inch thick over all of that. I would then fix a building paper to the outside of the battens to prevent the render pushing through the wire and entirely filling the void you have just carefully created. The EML ("wire") is then nailed through the paper to the battens before render is applied. For a top-notch job, there should be an insect-meshed air gap designed in somewhere (usually under a fascia board) to allow fresh air in behind the render, and the DPC at the bottom should be carefully designed to take any water that pools at the bottom away from the frame. Internally, I would fit foil-backed plasterboard, before skimming and decorating in the usual way. Of course, you should check that the insulation is 100% whilst it is exposed, and if it fits with the interior walls, you might consider fixing 25mm of Celotex or similar across the inner face of the studs before fitting your plasterboard.
I would also caution you to expect cracks at the junction of new render with old. These should be very obvious within a year or so.