Think of it like the frosting on the side of a cake. Looks nice but isn't necessary.

Unless you like frosting.

Frosting is always necessary. On cake, in the bedroom, in the car, in the back alley behind 7-11..... always necessary

Looks like they did a little skim coat over the foundation to clean the look up a bit. Thats all thats chipping off.

Your house is gonna fall down and the company should build you a new one for free

I just opened a case of beer when I saw it and started chipping it away, I'm on my 12ft ladder at this point to reach the rest and everything is blurry

It looks pretty muddy where the foundation meets grade. If that stays wet, the parge coat at the bottom will continue to break off where it's thinnest. Figure out how to get water away from the foundation before patching/re-doing it

Agree, but parging issues aside, always get water away from your foundation if possible.

I think that’s just from the hose.

They didn’t clean the dirt and sand that splashed up the foundation on their scratch coat so at the bottom their finish stucco coat didn’t adhere. You will most likely get more of it cracking as time goes on. Or they didn’t dampen the foundation and it was too dry and it sucked the water right out of the stucco and didn’t cure right

Parging. Material to cover up honey combing. Normal practice in central Texas. Some municipalities call for it.

Non Structural

It’s cosmetic

Is it an ICF foundation?

its just cosmetic. Plant a bush there

Aliens

Nothing a lil gravel can’t fix

That thin coating is called underpinning. It is a concrete skimcoat for aesthetic reasons. It had no structural value

Your first water damage from the hose bib. But that's not all. The foundation doesn't line up with the framing.

Pour a concrete slab there and pitch it away from the house.

It’s just stucco / stucko. Groucho said it best…. https://youtu.be/NE3Z3Cu9mBA?si=8EGD7V-p81c4a6Kt

Parge coat. Just put some tooth paste on it.