Water meters don't have bypass, but a pressure regulating valve on the house might. It is almost a non issue in terms of what we are talking about here. If the PRV has a bypass, then it will cap the max pressure in the house at the street pressure. But that is already too high, and the TP valve will probably weep first. If the dripping occurs when the water heater burner is running, then you might need an expansion tank. If it is more or less continuous, then the PRV is bad and needs to be replaced.
This condition should not be allowed to continue