Recently in Sacramento CA, I did a 200 Amp residential panel upgrade. When I removed the old Zinsco panel there was old vinyl siding behind it. Apparently years back the owner had stuccoed the house over the sidding. So, perhaps not thinking, I filled the gap with plywood and put the panel over it. Since then the owner has filled some stucco gaps around the panel.

Here is the problem, the inspector says that we have to stucco behind the panel, get the lathe inspection, etc. Obviously, from the pictures below you can see this will be a chore. I'm know codes vary from state to state, etc. But does anyone know of a work-around? Or, because of the existing vinyl siding are we okay?

Thanks,
Byron