‘Basement’ waterproofing bare bricks

I have just ripped out built in corner furnishings fitted 2004 at build. This ground floor entry has this short length of wall built into a block length retaining wall, property is on a slope so neighbours garden starts half way up the wall. During heavy rains there is seepage onto the tiles and in the past two years of ownership the plasterboard and paint have perished. Clearly last owner painted over some major issues.

I need advice on how to approach the problem now. I am hoping there are treatments I can apply to the bricks to make them fully waterproof.

Also any suggestions around home insurance ? Isn’t this a structural claim ?

Can’t believe a builder was allowed to do this in QLD.