NEC 422.16(B)(2) Built-in Dishwashers and Trash Compactors Requirement
NEC 422.16(B)(2) is pretty much a repeat of NEC 400.12 Flexible Cords and Cables Uses Not Permitted. (7) Where subject to physical damage. In review of this Article 400.12(3) also says where run though holes in walls ... or 400.12(4) where run through doorways, windows or similar openings.

First I would say I don't think the location of the receptacle and cord pose a threat to physical damage, but I do think it at least violates the intent of parts (3) and (4).

I will say that there has been plenty of debate among the electrical inspection community on whether a cabinet side is really a wall or a partition and is it allowed to be penetrated. I suspect a clearer definition will come out in later Code publications but right know everyone is stuck with the ones we have.

As I have said before, I have an opinion but it doesn't matter. These debates have pretty much left the decision up to the AHJ (electrical inspector in your area). You should probably check with your municipality on their opinion.