A home is going up right next door, and I noticed that the foundation walls have 2x4’s embedded in them. Won’t that cause the concrete to crack when the wood gets wet?
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Most certainly the embedded 2X4s are pressure treated (PT). Any PT lumber off the shelf usually has about as much water it can hold from the treatment process. If anything they will shrink. I can only hope they are keyed in or have hot dipped galvanized nails so they stay in place after they shrink. DaveM is on poi t I believe about the nailing for a facade, and because of that, there be plenty chance for them to dry and not get saturated again.
About the cracking, concrete will crack anyway, there is reinforcement added to prevent it from becoming a problem.