Seal retaining wall formwork stones?

Hello everyone,

we have built a retaining wall made of concrete formwork blocks to hold back the street (on the left side of the wall in the picture). On the right side of the wall is the way to our house, and paving will be done there. The wall is to be clad with wood in the visible area, mounted on a counter battens. Now the question is whether I should completely waterproof the wall on the street side with a thick coating? A dimpled membrane will of course be installed. We get quite a lot of water on this side since a small stream forms during rainfall and flows along the wall later. But does it bother me if the hollow blocks get wet and then dry from the front again?

I would say a studded membrane is enough, but if you want to replace the wood with plaster at some point, you'll have work again.