She may be plastering or repairing mud around the entrance. This is the female's work.The eggs are normally layed late April and May.
Here is more info: https://www.bto.org/sites/default/files/shared_documents/gbw/associated_files/bird-table-57-2009-nuthatch-article.pdf
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Here she is moving about. You can hear the male tweet-tweeting nearby, then a woodpecker cackling.