First pic: I'm going to go out on a limb and say the meter was there first. I'd find the mason that installed that wall...and ask him if he has a clue or did he bury that inside the wall too?
Second pic: If the breaker does fail to trip...not to worry there's always another fuse or breaker down the line that'll trip. Just hope it's not the one on the pole. So when the house finally burns down does the insurance company have to pay out or can they site he homeowner for being stupid?
I don't recall seeing anything on the panel that says I can't glue the breakers in the open position. Square D should really issue a service bulletion and add a warning notice to the panel.