Hello. 

I live in Edmonton, Canada (Zone 7a). I recently had exterior EPS installed on my home by a stucco company. They used the STO system and installed 2” EPS directly to the existing 1988 stucco. It was attached to the old existing stucco by cement, leaving about a 1/2 inch gap between the old stucco and rigid foam. (See pictures) The EPS was then finished with new acrylic stucco. I have a few questions about it. 

1. I have read that the 2” EPS is not thick enough for my climate zone and may cause condensation issues. Will this become a big problem long term? OR…. will that 1/2” gap between the foam board and old stucco help prevent that condensation build up?   Also…will that gap allow some heat loss and reduce the effect of my new insulation? Should I then seal it…..or not seal it up? 
2. The insulation starts just above the parging (see pictures). Will this be a big problem for mice/insects and should then be sealed for that reason?

Sorry for the long wind. 

Kris