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As you mentioned, parallel 350mcm is fine, 4" conduit x 2. Forget about the lugs on the OEM 600A brkr, most overcurrent devices of that size are buss-in-buss-out, that is, the field wiring does not directly connect to the breaker. The breaker is mechanically built into the generators electrical circuit with copper buss. The manufacturer will have provided dual-lugs at their load connection compartment. Kohler knows parallel runs are typical for ampacities of this size.