What to do.... ?

I can't tell for certain what is likely to happen....but I would think that the cigars smell like wet wood for the same reason that wet wood smells that way.....some form of wet rot is occurring. Be it bacterial of fungal I can't be certain.....but based on the fact that we are never worried about bacteria gobbling up our cigars I am going to guess fungal. Now the fungal could be in or on the cigars, or both. It could be in the hyphal form (which forms the furry plaques) or it could be in yeast/spore form. Since its volatile (you can smell it) I am assuming that it has gone to spore. Fungi will commonly go to spore form if easy life is being challenged (case in point, you corrected the humidity).

That is a whole load of speculation. But if it were me, I would take them slowly down to as low of a humidity as you feel comfortable doing. Then I would freeze them. Then thaw and bring back up to humidity. Things I would consider including in there were be to irradiate them (brief microwave?, ultraviolet light?) and keep them in a fairly well circulated area (blow the spores away), but these steps get a little more extreme and are thus more risky to ruining the cigars themselves.

All that said, once you have the humidity corrected, they are probably safe to store with other cigars, as the worse that will happen is that you may dust the other cigars with spores....I imagine all our cigars are dusted with non-sprouting spores to some extent, otherwise there would be no risk of the fungal furries.

Thats all just my speculation.