The only things I see to consider is if a lintel should be installed above the panel where the blocks would be cut, and if the position of the pipes will allow a shallow loadcenter to come forward flush with the wall.
There probably should have been a lintel above this box to start with.
I would remove this box and make the hole bigger than needed for the new panel at the top by a foot or so. There a lintel would be placed for support. but there would be enough room to get into the top of the new panel. Cover the opening with plywood/sheetrock until needed.
I doubt that the new box will come forward enough to be flush with the sheet rock ( service conduit already at back of box ) but you could cut the sheetrock around the panel cover allowing it to mount flush.
So they have to spend a few bucks to get a mason to fix this wall, it's not right at present.