It's called a wettable flank to make the soldered joint easier to inspect. If part of the pad reaches the side, a correctly soldered joint with enough paste that reflows correctly will develop a little fillet on the exposed side. See figure 5 for "side wall plated": https://www.nexperia.com/products/automotive-qualified-products-aec-q100-q101/family/AUTOMOTIVE-DFN-PACKAGES/https://www.st.com/resource/en/technical_note/dm00298756-leadless-packages-with-enhanced-board-level-solder-joint-reliability-for-automotive-application-stmicroelectronics.pdf