FS is compose of 3 type Cell
1. Solid Cell, 2. Fluid Cell , 3 Partial Cell
Especially Partial Cell [ included Solid region, Fluid region ] applied Wall function in Solid/Fluid interface.
Your image is shown Fluid Cell only. So you should See Fluid & Partial Cell usign 3D mesher
but I recommend to you to use 2D cut plot mesh.. you can select 3 type of mesh (fluid, solid, fluid and solid).
Go on see Fluid mesh.
i agree with kyu-hyung here, it looks like you're not showing the partial cells.
might be worth checking out the solving engineering problems and technical references to get some more info on this. the tutorial on mesh optimization will give you some more direct experience with the functionalities that are available to you for refining the mesh further.