Re: I have a cutout to bid. Really.
Just looked at your photo. A larger image woudl help but this is what I would do if it where me. Regardless of the "Rules" I would pop that piece of siding off being prepared that the entire colony may be attached to it. I am assuming it is not tong and groove or ship lap or any other reason the edges would be held in place by joining pieces of siding. I also assume that it is screwed in place. I guess I should say hopeful that it is screwed in place. If it is nailed and possibly glued you may not be able to remove it without damaging it.
It does not look like this is actual siding but painted plywood. The hope would be to remove the one piece be able to get the bees and get the heck out again. The Rule would be that the ply needs to be replaced with approved siding but they have to catch you first. I think there is very little chance of running into trouble with inspectors, just be informed.
Hope for the best plan for the worst and realize you may have to destroy that siding to get it off. then there will be a hole that needs to be covered. On top of that the chances the bees will be nice and convenient once you do remove that piece are just a tad below nothing. Just being realistic with that thought.
But yea I would try to see what is behind that one piece. That is until or if information dictates otherwise.
Oops just took a second look at the photo and I can just barely tell that it is T-111 siding. Same issues about getting it off in one piece apply. IT does not strike me as installed all that well so there is some hope.
Stand for what you believe, even if you stand alone.