There's a good four inches between the bottom of the insulation, and ground. It was dug out about six inches. Then, it was wrapped from the bottom, and up over the top. Also, tar paper will be put down the sides, to prevent future mulch from coming into contact with it.
Take a last good look at the front wall of the mancave, and the placement of the door. The door is coming out, will be framed in, and sided over. Then, move into the addition.