It looks like a light…similar to a stair well wall luminary…out there specifically to highlight the missing kick out!
No real idea, but that is very odd.
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My SWAG is a fresh air intake for something!
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Aw damn! That was going to be my joke but I thought I’d check if anyone beat me to the punch 
Good form!
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Is that a bathroom window on the second floor right side? Then my opinion; Bathroom vent.
Just have to run all the fans to see if air comes out.
The install looks professional even through the location is not practical.
Step and counter flashing look well done. Due to the second floor eave the amount of rain water will be minimal. If the vent was fashioned water tight I se no issue.
