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Sloped Basement Sidewalls

Hi! I've got an craftsman-style house built in 1913 and my question is in regards to finishing the basement. It's a 1-story with basement built on a slope, sloping downward when standing in front of the house. The foundation walls are poured cement except for the rear wall which is brick. The basement is mostly slab with a couple areas that are dirt-only.

In the basement near the front of the house where the floor slab meets the foundation walls, the cement is sloped -- so instead of a 90-degree corner, there's a buildup of concrete extending up the foundation wall and onto the slab about six inches.

After much searching, I'm still at a loss to exactly what purpose it serves -- some sort of drain-aid, perhaps? Essentially, I'm wondering whether I can safely remove it in order to accommodate framing of the basement walls or if I should sacrifice the floor space and build around it.

Thanks in advance for any input or ideas!

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