That wormy spruce really is just junk. The holes are almost big enough for me to put my little finger in and the wood is too soft to be any good. Most of that ends up in the firewood pile. When I come across pieces like that I can only use them in non load bearing areas or just toss them if they’re bad enough.
If it was hardwood, I would fill the holes with colored epoxy. That would be something.
Dave.