Here it's standard operating procedure. SEU is just stuck out of the house and the poco installs it into their meter. Brick,Block, Siding, what ever it makes no difference. All we do is pack duct seal around it to seal it
Imbedded means buried in the mortar. Merely penetrating through the brick is not imbedded. He seems concerned about the mortar damaging the SEU. Chip some clearance around the cable, seal with duct-seal and call for a re-inspection.