Spalling in Basement Wall

[Mallory Atkins]

11111

[Bruce Ramsey]

Long term water intrusion. Most common cause is improper gutter maintenance and downspouts not directed away from the home. Next is improper grading. Until you figure out where the water is coming, from you are going to have ongoing water intrusion.

[Jerry Peck]

And I don't see any "spalling" in the photo.

Spalling is rare in block construction, unless there is a filled cell or filled lintel/bond beam, and even then typically what is seen is not spalling.

That looks like fungi/algae growing on the wall, cause from the things Bruce pointed out.

[Elizabeth Chambers]

Your inspector did not inform you that any water intrusion like that is serious and you should be concerned?
Ok, if not then I will, that water intrusion is serious and you should be very concerned about it.