Thanks for all the contributions.
I fully understand that this type of construction theoretically results in an out-of-plane hinge in the wall. However, I also know that this type of foundation wall is fairly common in residential construction... even very common in the case of a stepped concrete stem wall with varying height cripple walls on top, as in a partial "daylight" basement.
Presumably, these concrete stem walls are designed as cantilevered walls with fixed bases, although I doubt they are detailed properly to develop a fixed condition between footing and wall, but at least there is some fixity.
In the case of CMU stem walls, I think most residential builders and do-it-yourselfers definitely don't attach the wall to the footing. Subsequently, when a wood cripple wall is built between the top of the stem wall and the first floor framing, the result is the three hinge condition we are discussing now.
In the case of my current project, it is a renovation/remodel project, and the contractor was already planning on replacing the CMU and cripple walls with new construction, because what is there is in poor condition. He wanted to replace with a new CMU stem wall and wood cripple wall, but I designed a full height CMU foundation wall, hinged, but also laterally braced, at the footing and the first floor framing.
For what it is worth, I dug through the 2006 IBC and IRC and found several prescriptive requirements for these types of cripple walls, but no mention of the foundation stem wall required to support them. Seems like a hole in the code to me. The prescriptive requirements for CMU foundation walls are predicated on lateral bracing at bottom and top. There are no prescriptive requirements specifically for partial height walls like what SkiisAndBikes mentions for the Canadian Code.