Here are two pictures. A friend said I should have made a cut with an angle grinder before removing the frame. I'm thinking I should trim the stucco and drywall flush with the stud before applying drywall. What do you think about spray foam to fill in gaps and then trim smooth? I'm considering the rounded corner bead at edges or possibly molding on the stucco side since paneling ends 1/2" short of stud, which would bring it 1" short after drywall is installed. Drywall broke off flush with stud in a few places. As I'm sure you can tell, I'm a rookie at this.
What is your recommendation? Thanks in advance.
OK, let me try this again...