Board and Batton siding

We were doing a cabinet install this week and just happened to do my nit picking as I was moving around, Home is less than 10 years old and very nicely done. The siding is board and batton and finished very well and accurate, natural wood, painted, battons not caulked although could not see between the boards to see if they were. Flashed at openings properly, however the wood was within 1/8 - 1/4" of the flashing all around and caulked to it. At the top of the boards there is a 8" metal siding strip directly below the sofit, were the board and batton starts they protrude out from it about 3/4".
Question is, would the caulking at the flashing be correct or defect as it will not allow water to escape. I have looked through the building codes for Ontario and cant find it mentioned either way most product sites don’t mention it either. The paint is not blistered or peeling everything looks good.
Is it truly nit picking or should it be noted and recommended to monitor and maintain regularly?
Sorry no pics, just for my info.

I’ll throw in my 2 cents. Ideally that flashing would have been a horizontal board,flashing or capped with aluminum, however up close to the soffit wouldn’t get much rain.(if I am pictureing it right) Anytime I come across wood siding I always recommend regular maintenance and remind the buyer it will be a “labour of love”