Just correct moi at the moment ., the large junction box on the right side of the panel that housed the sets of service entrance cable ?
If you did have two set of the Service entrance cable then you have one set run thru the one of the panel box to the panel box on the left if so IMO that will not fly very well I know it may approved that time but with modern code that change a bit. ( It will never fly in France at all that is a major no-no on that one )
Second thing it kinda bother me about the bonding if you did bonded at the ATS location then the panel at the left it have to be unbonded as other members mention very clear on that.
The last thing do you know what the AIC rating on that transfer panel ??
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