Join Date: Sep 2018
Location: Mission British Columbia Canada
That would be fine if the outlet stayed back in the box and was recessed, but then the cover plate won't fit and it'll look weird. If you use longer screws and extend just the outlet to the edge of the new wood then outlet is out of the box and the terminals where an arc is likely to happen are now only 3/8 of an inch from a flammable material instead of inside an insulated box.
Take a look at the picture, when that happens you want the outlet safely inside the box so nothing else catches fire. The box and the cover plate are made of plastics that won't catch fire, they may melt a little but they won't flame.