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It's not only not meant for high moisture areas, it's not meant to be exposed at all. Plywood of the same rating, such as CDX, is not meant for exposure either, it is still only used for underlayment. There are other plywood, OSB, and hardboard products that are rated for use as exterior siding, generally they are formed or have relief cuts to improve their appearance as siding. T1-11 comes to mind as a popular plywood-based siding.
I don't have a bias against it, it's a good product when used properly. Take a look at my BYC page. I build a coop with 3/4" exterior ply for floor decking, a hardboard siding product for the siding, and OSB as roof decking.
Deep litter doesn't necessarily keep the floor dry. Leaky waterers, blowing rain, and poor ventilation can lead to damp or wet litter that holds the moisture to keep the floor from drying.