He should have cut the stud and kept the box intact if the sconce couldn't be moved. That's still possible.

I'd call the local electrical inspection division and see if they'll let it pass. Much better to find out now in the drywall stage than get a red tag after the tile is up.

Bisha-

That would not pass code in most areas. For example, if the front edge of your box is recessed more than 1/4", you need a box extender to cover the wall edge to protect against a spark that could be a problem for any adjacent flammable material. You have such a huge amount of wood exposed that it is a greater hazard than a box that is not quite flush with the wall. Maybe a piece of sheet metal could be affixed to the side of the stud so that there was no exposed wood surface, but that is a question for your local code authority to answer. Good thing you caught this.

Thanks for your response!

Doesn't fly. First see if your electrician can use a pancake box instead - looks like 12-2 NM cable which doesn't meet box fill, may have to use 14-2. Or if your sconce is rated to support a junction within the housing, then you don't need any box in the wall at all. Last option cut the stud but make sure the integrity of it is not altered.

Thanks. He is changing it out. Says is was only temporary.

"Says is was only temporary."

What he meant was: "It was permanent until you noticed it." ;-)

100% No!