Must mean that there are normal windows in the wall, whether it be weeod or concrete foundation

It means that the grade drops off enough on the home site that the basemet can have 1/2-high concrete walls (around 4 feet). The rest of the wall is made-up of wood framing and some windows. When the grade drops off even more permiting a part of the basement to have a door to the outside the term would be walk-out basement.