@donhe a very well camouflaged cocoon! It's situated almost vertical in the middle of the first photo and in the second it's at 45 degrees in the direction of this slash: / . There is a large hole in the left side and a smaller one at the top. The cocoon is a slightly different colour particularly at the top - more orange than the surrounding grey bark.
Interesting. @Hejor1 : Can you detach it from the tree and take its portrait on a neutral background, and cut it open carefully with say nail scissors, and photograph what's inside?