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The numbers are squares. In square one is a giant. There's a wall at the opposite side of square 3. Normally, the giant would be able to make a close combat attack against a character in square 3. Can the giant also destroy the wall alongside square 3?

Giant Reach
This character ignores opposing characters' Plasticity and
adds 1 to its d6 roll when breaking away. When this
character is given a move action it can use the Carry
ability. When this character is given an action that includes
a close combat attack, all squares within a range of 2 and
line of fire are considered adjacent. This ability can't be
countered.

never mind I read it again and changed my mind. I will say that the giant can destroy the wall.

A normal character wouldn't be able to destroy a wall between squares 2 and 3.

Characters can't use a close combat attack to destroy walls in adjacent squares, they can just destroy the walls along the edge of the square they occupy. Treating more squares as adjacent doesn't change that.

I'd say nope since your LOF doesn't cross over to the other side of the wall, which is what you need to bust down a wall.

G1|2

Is blocking terrain treated this way as well?

A giant can use a close combat attack to destroy a squares of blocking terrain 2 squares away. You can destroy adjacent squares of that, and a square of blocking terrain doesn't block LOF to that square.

thank you. I get the two confused.