In the cavity of a cavity wall is over the 50 mm from surface, and if a cavity wall is filled with insulation, then it's not a cavity wall, there is no longer a cavity, simple English.
At one point it was common to run cables between floors in the cavity, and even when they started filling the cavity walls, they for a time continued to run cables in them. I remember trying to renew my sisters fuse box, and found the beads used in the cavity pouring out, had to drill holes, and put some glue above the unit to stop all the polystyrene balls running out. Around a 1985 new build.
The LABC are paid a lot of money to inspect building to ensure they are built as per spec. And there have been some extreme cases where they have clearly not done their job. Ruthin was the one I remember where foundations were a meter too low, so homes flooded before blocked culverts caused the water to flow over the road.
There was a long drawn out court case, the builder blamed the LABC for missing the error, and the LABC blamed the builder, never did read the final outcome.
However if the wires are wrong, then the question is who is at fault, builder, electrician, or LABC? And having been involved with errors where LABC were involved, not sure I would want to pursue them as once they get their teeth into things, they will not let go.
So the question is, if there is really a problem? Some times more prudent to turn a blind eye.