There ARE listed floor/ceiling tested design assemblies which meet or EXCEED the code proscribed minimum separation. There IS more than one way to "skin a cat". Obviously, and in the condition as pictured, this does not APPEAR to be one of them.
As far as J.L.'s assertion that CMU or block wall construction cannot meet the minimum wall separation that is not true, in fact it often exceeds by half-hour to hour(S), and is oftentimes an upgrade, or required if the attached garage area is of a greater size than what is minimally addressed in the code (esp. if not protected - or pre-dates requirements to be so protected - with a fire suppression system). We cannot see the details of construction to know if this is the case.
You can review details of same (approved/listed design specifications for fire rated/fire separation assemblies) at UL.com.