Removing it should be fun, especially if he’s skewed a few nails into it to hold the joists. I know it’s wierd, but what’s the issue leaving it as is? Compressive strength? Thermal? Movement? Slip plain?
Those (plus fire) are relevant, but are not major issues in themselves.
Timber is still built in to walls – wallplates and joist bearings come to mind, plus timber lintels in the past which are still performing. It will be stable enough once built in, and will take relatively high compressive loads of up to three storeys.
The mayor issue is of risk – risk of dampness and rot and risk of fungus and insect attack. “Ah” you might say, “what about timber framed houses?”. Well in that case the risk of rot and attack is known and mitigated against via the vapour-check and breather membrane layers, so yes it’s still possible to damage these and this could impact the frame, but in general use the frame is protected.
With masonry, the risk is not managed to the same extent. The timber in the wall may suffer persistent penetrating or condensation moisture, and it could decay. Or it could be a good environment for insect attack. So the timber is not protected as it would be with timber frames.
And then there is the issue of disproportionate damage, access, and extent of repair if timber got damaged – the wall (and roof) above settling unevenly, and accessing the work. Ok, it’s all repairable and it wont happen suddenly, but it will be a costly, awkward and disruptive job. So why risk it?
So generally it’s a no-no to build in timber to walls, and it should only be done if the risks are managed and precautions taken.
In the OP’s case it looks like it’s not even treated timber, and the bricklayer’s blasé comment and inaccurate statement that it’s common and makes the structure much better is just wrong and gives away his ineptitude.