That's the output of a split system, the part doing the actual condensing and fuckery with the air is outside, that's just a box that can output the cool air. Some are extra fancy and do fan control to move it across the room better.
The only thing in that box is some wires, some fans, and a control board for everything to run off of
That's only partially true. The evaporator is located on the indoor unit, and that's the part that gets cold and generates all the condensation. There is a drain hose on the indoor unit that has to be directed outside, and the condensate water will only flow downhill. Up is not an option. This is what makes installing a mini split on an interior wall such a hassle.
So that's why I'm wondering why the lineset cover goes up in that picture. I guess it's possible there is another hole punched in the wall behind the unit for the condensate line, which is the normal way to do it. But I have absolutely no idea why, if there is exterior access like that, anyone would not also run the rest of the lineset through the same hole...
Not to mention I don't see a way to check the drain pan from the inside. That set up makes me nervous. I've got three registers in my house and I check the pan every time I clean the filters. No way I want to deal with an indoor leak.
Idk how common it is but where I used to work had a split system where for some reason the evaporator unit was also outside like a standard AC unit and then cold air was ducted in and pumped out of one of those boxes