Localized condensation issues in wall

Wanted some input on this minor mystery. This is a cabin at 5300’ elevation, and I found some moisture issues in the corner of the wall under the house in the sub area.
This is above ground, but under the living area.

The moisture is in the insulation, and is soaking into the framing and sill in just a foot or two on either side of the corner.

Plumbing leaks have been ruled out.

The garage is on the opposite side of the wall to the left, and I was thinking that maybe the garage door may be allowing some colder air to get in. (It can get down to 10 degrees)

The furnace and water heater are in the sub area, and it is insulated, so I’m thinking that it is actually the warm side compared to the garage. But then wouldn’t the condensation be along the entire wall and not just in the corner?

The paper is facing the garage, and maybe in the area adjacent to the door the paper should be facing the sub area side. The garage is under the house and is insulated. Even though the garage door is insulated,
I’m wondering if cold air is coming in around the edges.

Any thoughts?

Hard to say 100 % however we all know warm air holds more moisture that cool.
Maybe this link will help some.

http://www.buildingscience.com/documents/digests/bsd-106-understanding-vapor-barriers.

Perhaps the paper is on the wrong side and soaking the insulation.(paper to the people here…warm side) all assuming it is from the moisture barrier of course.

My best guess is to get rid of the paper backed.

Thanks for the input Bob. I live down in the valley, where it never gets below freezing most of the time. So I have never run into this before.