Hey all:
I have one more idea for you!!
Could always cut 6"x6" hole on the inside wall..cut out the old outside faucet, and replace using new copper, coupling, elbow and new outside faucet (presolder everything but the coupling). Then solder the coupling inside the wall (carefully) and also no worries of burning the siding.
Then just "snap" a spring loaded access panel in place (sold at home supply store everywhere) for future access to outside faucet if ever need it again...

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Hey!! Just another way to do it...

Good luck!!