no expansion joint at exterior foundation step

[RGWA]

a residential concrete foundation extends 10" beyond frame & stucco exterior, with 3" thickness creating a step in L shape 10'x10' L; isn't this a design flaw? There is no expansion joint. The step is exposed to temperature fluctuations. Lowest in winter = 10 degree F, typically 20 degrees F; summer = 90 degrees F. Does this cause cracks?

 

[jhnblgr]

Corners in general cause cracks. But I’d guess this was caused by settlement or heave

 

[RGWA]

Probably b/c no expansion joints within 1 block (5 unit) townhouse foundation= settlement + 4 foot excavation within 20-30 ft + no weep holes or vertical steel in retaining walls