I don't know about higher level walls (I only ever build Ancient Walls), but Ancient Walls can be built while the city is under attack. Repairing, if I am not mistaken, is different.
Doesn't look like they are damaged, but sometimes 1% damage can be hard to tell on the map interface. If repair walls comes up under city projects, then that's the culprit.
I really think it's just a mod breaking the game. It looks like quite large, building related mod. Could very well be messing something up either because there's a bug or because it's outdated.
Looking at the first post and the last few posts, it appears that the mod hasn't received an update for Rise and Fall, that could explain why it doesn't work properly.
In fact, it's explicit at the Steam Workshop version that it does not work with Rise and Fall.
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