I don't know what CBS stucco is, but is there wood inside those walls? Then, you won't want to have any garden soil piled against them. There's nothing that attracts termites like moist wood, as they can sniff it out. But giving them a paved highway right to it -- dirt against the walls -- would not be a good idea. Some people then get the idea that they'll have the cute landscape wall without raising the soil level ... but honestly, nothing could look more ridiculous than a fake retaining wall that's empty. A better idea is to keep the soil level as it is and plant it nicely. If you must have a retaining wall, find a place in your yard where there is grade change, and then create the need for the wall.

Even if the walls are masonry it's not a good idea to pile earth against a house. You risk compromising the damp proof course.

FYI: CBS is shorthand for concrete block and stucco. Still not a good idea to invite termites into your home by piling dirt up against the walls.

Thank you I never realized that!

Thank you Yardvaark my outside walls are CBS with metal studs but I totally agree and I’ll be going right to the ground level with my garden. I think your right it will feel more “open”!

Even with metal studs, the contractor uses wood furring strips on the block wall interiors to attach the drywall as Yardvaark says above. Termites will find food in your house. Even if it's a small amount like the furring strips.

Make sure all plantings are at least 2' from the house.