exposed wood in foundation?

Inspection of Pulte home built 2006. Rear of home has some exposed wood visible in the foundation? Look like beams or something, but from inside basement along top of foundation wall there is nothing penetrating the foundation. Anyone seen this before and have an explanation?[ATTACH]


They are for nailing the siding to.

Looks like treated lumber inserted into poured foundation used as nailers for siding.

Should then the siding come all the way down and cover the lumber so it is not exposed? Even though treated lumber it will still eventually decay / rot due to exposure? Thoughts?