I would agree take out the worst bits and leave the main bits. In all probability its unlikely to fail. If you must redo it all use a tile backer board
I decided to try out the bath for the first time. It resulted in a massive leak coming down through the kitchen ceiling downstairs. Upon investigation, I found this. That black tape is holding 2 pipes together, with a 20mm gap between them. This was done by the same builders. Unbelievable.
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