334.19(B) specifically allows NM to be installed in the cavities of block walls in normally dry locations.

Basement block walls, freestanding unfinished walls, etc, are not dry. But if the block wall is above ground, covered by a roof, and protected from the weather by siding or brick (etc), then it's a dry area. Why wouldn't romex be allowed in it?

(FYI, 334.2 defines NM, NMC and NMS :))