(1) Routing and Sizing. This conductor shall be routed with the phase conductors and shall not be smaller than the required grounding electrode conductor specified in
Table 250.66 but shall not be required to be larger than the largest ungrounded service-entrance phase conductor. In addition, for service-entrance phase conductors larger than 1100 kcmil copper or 1750 kcmil aluminum, the grounded conductor shall not be smaller than 12½ percent of the area of the largest service-entrance phase conductor. The grounded conductor of a 3-phase, 3-wire delta service shall have an ampacity not less than that of the ungrounded conductors.
See related ROP
(2) Parallel Conductors. Where the service-entrance phase conductors are installed in parallel,
the size of the grounded conductor shall be based on the total circular mil area of the parallel conductors as indicated in this section. Where installed in two or more raceways, the size of the grounded conductor in each raceway shall be based on the size of the ungrounded service-entrance conductor in the raceway but not smaller than 1/0 AWG.
I don't see a problem with your installation. I do, however, have a problem with the inspectors statement about sizing it two sizes smaller. Once again this old wives tale about two sizes smaller appears.
Rather than re-type everything, please read my posts at the end of this thread (disregarding the third grade comments from other posters);
neutral size rule
Good luck!