So, what does the problem mean? Well, the top of the walls are too high to match up with the rest of the house. They resolved that by shaving down the top of the walls. But, that means the ceiling of the basement would only be 7' 3". I'm not quite that tall, but still, that's a bit too short. So, they'll dig down around inside the perimeter to get back that height. Apparently no downside, but something to deal with.
You can see from the pics what the final wall looks like. Next up is laying the floor trusses, laying the subfloor and then building up for first floor walls. It's starting to move!
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