Unpleasant smell of wood

It's 99% likely that any smell is coming from behind the panelling - not from the panelling itself.

Mould
Mildew
Damp
Dry rot
Wet rot
Rotted framing or battens
Wet/mouldy drywall
Salted plaster
Dead rat or mouse

I've seen all of the above - plus a lot of other potential causes besides. You need to take some of the panelling and figure out what's happening behind it.
 
May I suggest using an inspection camera.  I got one from Lidl (UK supermarket which sells food, tools and everything else) which has a 6mm diameter camera, just drill a hole and post it through to see what's behind the paneling.
Regards
Bob
 
There are services that show up with a cute little beagle and they can tell you if you have mold in the walls without tearing them out. 

I’m not sure that solves your problem though.

Shellac is the world champ for sealing in odors.  You could put down a coat of SealCoat (clear) or Bin (pigmented) shellac.  It won’t get rid of the smell, but it will seal it in. 

But before I sealed in the smell, I would want that cute beagle to tell me if I had black mold in the house.

Unlike asbestos, which you can live with in your house as long as you don’t disturb it, black mold is out to get you.
 
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