Typically we don't installed cabinets until the finished flooring has been installed. The exception is pre-finished hardwood which is installed after cabinet installation. In that case, the cabinets are shimmed to account for the floor thickness. Has the finished flooring material been installed?

Shims are normal. The top alignment height of base cabinets is 34 1/2” above the high spot in the floor, including the finished flooring. New subfloors are no guarantee of level. Identify that room high spot. Add the finished flooring thickness. Then measure up with a laser to 34 1/2”. And that’s where the line should be that they all get shimmed to. That can be a lot of shims if you have an out of level floor, with a main beam high point in it with sags on both sides.

So we do have finished flooring installed and the cabinets are on top of that flooring. What i don’t understand is why all of the cabinets sitting on 1 inch shims (not one side but every single one of the cabinets corners - effectively all is elevated by 1 inch). it is not one side or another but all of them.

Have you found the high spot in the room yet? You do not proceed past Go until you do exactly that.

What is the total height of base cabinet + shim? The high spot may be behind a corner cabinet that you are not seeing. Any pics?