I believe this is called spalling? Looking for repair ideas!
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This happened in our basement. Spalling occurs when there is water "pushing" from behind out through the concrete. It pops off paint and pieces of concrete. We addressed the water by fixing the drainage outside first. Then I bought a product that has fiberglass in it from Home Depot...I can't remember the name sorry...but it was premixed and we put it on with spackling tools (it was sort of like stucco on homes in the south). We refaced the wall after deep cleaning and metal grill brush scouring. Yours appears to be exterior which is super weird (but I see its all around the faucet) is the faucet leaking, making the wall continuously wet? If so- replace that faucet asap! Then you can deal with the reface. If the water is not stopped - it will continue to erode the foundation.
Thank you for your input!! Yes, the hose bib will be investigated ASAP!
I also do not see any water barrier applyed to the surface of the base...I would continue to chip off all the stucco, check for leaks, put on water barrier and then restucco
forgot again...the water barrier comes in 5 gallon bucket....looks like tar and is trowelled on