i'll agree the crk's probably static rather'n dynamic (opening & closing in reaction to changes in temp) since its inside,,, however, in my experience nothing you can do will prevent wtr infiltration,,, stop it here & it'll find another ingress,,, we never had luck w/hydraulic cement either in residential, commercial, heavy, industrial, or parking ramp & we did this for a living,,, the reason for this is simple - the water's still there surrounding your basement - stop it here & it comes in there - stop it there & it comes in over there,,, & its got all the time in the world.
dick & i both agree drylok products're worthless in this situation,,, none're useful for negative-side waterproofing however they are excellent for above-grade exterior use.,,, we may, under certain circumstances, find success w/xypex (a penetrating crystalling mtl) but, impo, not this time nor at your home,,, if the walls were conc, the crk could be injected w/either hydrophyllic or hydrophobic altho i'd use -phyllic polyurethane,,, block has too many mortar jnts which're the prime weak spot.
parging's another method that's not worth the effort unless the wtr problem's solved 1st,,, it may not be severe now but you've got an indication there's a problem,,, block cells're very likely to spurt water when you drill 5/6" holes into the cells & web - the little open space at the ends of the blocks,,, try his method, if you will, but i'll bet the answer's in managing the water & not in preventing it,,, think of your basement as a ship's hull below waterline.
if the terms 'french drain' & 'sump pump' ring a bell, that'll be the solution,,, in general, there's no difference between theory & practice - in practice, there is.,,, cheap & easy rarely works in these circumstances,,, you can't prevent it but you can manage it successfully - note that its dirty, physical labor best accomplished w/5 gal bkts,,, call a waterproofer, engineer, architect - it'll be the waterproofer that solves it,,, but suit yourself - its your home.
there is a professional association - international association of waterproofing & structural repairs - or some such group (i forget specifics),,, we won't even get into wall pins :furious: used to strengthen cmu walls.