I've done many framing jobs with OSB sheathing that were sided with vinyl. The most important thing IMO is to space the sheathing on all sides. I always give 1/8". I gap my CDX plywood as well. Your siding should be stud nailed regardless of what type of sheathing you use.when replacing exterior sheathing for prep of a vinyl siding,is OSB ok to use as sheathing? we will be using tyvek of course.
obviously OSB is half the price of plywood so cost is the reason we ask.
If you run the sheathing horizontally, you have to block the gaps on it. I don't agree with it, but it's code.We used to stand up osb and butt it tight. if and when it swelled at all it would make the wall wavey. especially on garage walls >9' with 2x4 construction. makes it look like you didn't crown your studs.
The blocking at all ends and sides helps transfer the lateral loads better. For shear paneling it's required to block all ends and sides..............Blocking is not required in Fargo or Moorhead. Dont know what the reason would be for it. Warping between studs? havent seen it with osb that has been kept out of the elements. plywood more prone to warping and delaminating than osb.