It is not normal. I would not use grout, I would use caulk with the correct cover.

There are fixes for your handles…different covers, cut the pipes. Can you explain why the plumber left the pipes exposed?

Are you able to post pictures?

Tile can be replaced for a smaller opening, if the shower is in an inside wall you may be able to open the drywall and adjust the rough in valve from the backside.

I'm having trouble uploading photos will try again later

I see one photo, but it doesn't seem to show an issue. It also doesn't show a tiled wall.

Koren:

Shower valves come with a measuring jig to allow installers to tell the range in which the valve must be roughed in. From your picture, I'm betting the jig was not used or was ignored because your valve does not appear to be within the manufacturer's recommended range. Changing it is possible, but a real PIA.

If you change it, you'll probably end up having to use an oversize remodel escutcheon.