Who is responsible for this? UPDATE for those interested....
Second Pic looks like you excavated below footings?
If left for 3 months this could have caused the failure.
Are you allowed to change the slope of council land?
Short answer, No
Zero level alfresco (Same FFL between alfresco and house)
The problem is more the level difference, the exterior has to be lower than interior, about 75mm
Sealing cut edges on Hardies Scyon Secura interior flooring?
Pretty sure for wet areas you leave a gap and fill with sealant.
Therefore painting not required.