The only reason I can think of is for frost. Living in the northeast you need to be 42 inches(where you are) below frost with our footings. Your wall and planter may be there for meeting the depth and helping with insulating against frost.
The damage to your walls is most likely from heaving. Water behind the walls freezes and then pushes things around, braking the wall into sections.
Take the wall out and dig down to see how far the footing of your foundation is. If it's not at 42 below the soil line, rebuild the wall with landscape timbers and timber-lock screws...they are easier to fix later.