I did an inspection on a house where the electrician ran L1 + L2 from the transfer switch to the EM panel, and connected to the utility neutral. I tried to explain why he needed L1,L2,+N from the generator.
I told the home ownwer that would work fine unless the utility neutral opens, then it would burn up everything in his house.
"He says nope it's all been tested it all good."
About three months ago we had a huge storm and the power went out in that neighborhood, big tree, and FD got a call for heavy smoke in the house.