A quick anecdotal story. I bought my house almost 2 years ago. It was about 10 years old at the time. My daughter was down in the basement watching TV and was complaining about all of the LARGE bugs like moths etc flying around the TV at night. Wondering where they were coming from, I looked but couldn't find any obvious entry.
I stumbled upon the issue a few days later. We were shopvac-ing the french drain of bugs/spiders as well as the ceiling joists in the basement. When I got to one of the windows, I saw one of those stink bugs crawling from the top of the one window. Turns out the builder left a 1 1/2" gap at the top of both windows! The siding actually came down far enough to where the issue was obfuscated. So for 10ish years, a nice large gap was above both windows. No wonder there were so many spiders and bugs in the house! How the previous owners didn't see that, I'll never guess.
Anyway, I fixed them with 10 bucks' worth of PT wood and caulk. I placed the PT on the outside, caulked, and done.
Why not add wood framing around the window. PT or otherwise to fill in the gaps either on the inside or out. Preferably keeping the elements from entering the house from the outside is preferable but it depends on the situation. A similar framing on the inside should be done as well to complete the seal and can help dress up the window to boot