Paint works well over it.
Seal bottom edge of siding.
This is messier than acrylic latex but effective.
Bottom of siding boards should not be caulked water is meant to exit through the bottom of each board.
I would be hesitant to seal the siding to the foundation.
Coat the top edge of the siding where it meets the top of the wall the bottom edge where it meets the foundation and all other areas that a larger brush will not reach such as into the overlaps between siding panels seams between sections and around doors and windows.
Simply apply this inexpensive filler into the cracks to seal.
Mice can climb under the siding and enter the home through an existing construction gap.
Seal small cracks and gaps in your siding under 1 4 inch wide using an acrylic latex caulk.
There are professional materials that can be utilized to secure these areas on a home.
Lp siding products also come in sheets in when water runs down the face of the siding it tends to hang on the bottom edge wicking up and causing the bottom edges to swell and delaminate.
Over time the siding can completely fail as in these examples.
When installing the starter strips allow a 1 8 inch space for corner posts and j channels for expansion.
6 siding transitions by foundation often siding is not secured all along the bottom near the foundation.
The bottom edge of lp lap siding is where the failure is first evident.
To seal the edge of a siding panel where it has been cut and to secure it to the wall you can use under sill trim.
Grass and mulch along the foundation provides habitat for mice.
Step 7 seal larger gaps up to 1 2 inch wide with polyurethane caulk.
Plywood siding is typically made of fir or cedar and usually has vertical grooves that give it the appearance of planking.
While my experience is more with vinyl siding sealing the siding to the foundation would deny any moisture that developed behind the siding from driving rain between seams in the siding condensation behind the siding ect an exit at the bottom.
While paint does tend to somewhat glue these pieces together caulking them is never advised and can cause permanent damage.