I had a stucco over wood frame for ten years before moving here (in Florida).
Wire mesh attached to studs thru sheathing. The stucco'ed over.
Never an issue, never a crack. Will need paint every 5 to 10 years.
benefit: if you want to fill holes, or even add something, it is easy to patch stucco and make it look like new.
Had a birdcage removed from my house. Filled a whole bunch of holes, and ground off sealant and stucco. Patched and couldn't tell it was ever there.
I would imagine with siding, trying to match it, fill holes, etc. would be very difficult without evidence.
Downsides: Like any wood frame home, not a good seal for insects and even termites (they'll get in from underneath).
Not such a good seal for moisture either (water damage) compared with stucco over block.
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