Venting/code?

I just had a direct vent, natural gas hot water heater replaced. The unit is in a 2nd floor bedroom closet and vents through the wall.
The plumber replaced it with a unit with an atmospheric vent (through the existing wall vent).

Does this pass the code test?
The closet is now stinky (I think from a tiny bit of the exhaust gases). I imagine it's from the gap between the water heater and the vent.

Thanks,
Big Al

The way you explain it no. But post a picture so I can be sure.

Here it is

There are multiple issues with that install

Oh,do share!

Besides from the incorrect vent. There's also space requirements for gas water heaters they need fresh air for combustion burning so shoving it in to a tight spot like that is just wrong. Could cause problems it could not it could void the warranty.
Also I can't see from the picture but is there any type of shut off valve near the water heater

So what is the particular problem with the venting?

Hot in, cold out and gas all have shut-off valves.

That is an atmospheric vented water heater it is designed to be piped to a flu or some sort of chimney that goes to the roof that floor chimney creates enough draft to naturally pull all the flue gases safely away just sticking the flue pipe into a wall like that when I create enough draft. The Gap that you see in between the flue pipe and the water heater is a draft Hood its purpose is to let the chimney pull room air before it pulls the hot air down in your water heater.
Take a match or a lighter light it and play sit next to the draft Hood if the flame gets sucked into the flue pipe it's but if it stays normal or the flame gets pushed back into the room that means flue gases are also are being pushed into your room

You can also place a mirror around the flue and watch for fog. The match trick is good also or a smoke/cigar if you do either.

I like the mirror idea

The last direct vent water heater I installed the water heater had to be put up on blocks so the elbow that comes with the tank can sit directly on the divertor. The elbow is specially made to vent and bring in fresh air. PS There is no valve on the cold water between that tee and the tank.