Absolutely, that's pretty standard these days. Most building codes require a 1-inch clearance from combustibles for exterior chimneys, and if it goes thru any framing, that distance increases to 2 inches. I helped a friend with the same situation on his cabin last year. We had to pull back some siding and install a metal firestop plate. It was a quick fix, and it passed inspection without a hitch. Let your friend know this is a common issue and definitely something they should get right