Woodworm refers to the larval stage of beetles that eat wood, not worms. Don't be misled by the name; it's beetle larvae, not actual worms, that cause woodworm.
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Damage Indicator
Use 'woodworm' to describe damaged wood, often with visible holes. You can tell this wardrobe has woodworm because of the tiny holes and sawdust.
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Repair Context
'Woodworm' often appears in discussions related to furniture repair or antiques. This chest has woodworm; it'll need professional restoration.