That's how I would do it, but I guess the more correct way to do it would to leave the transformer mounted on the outside of the box with the line side wiring on the inside like a doorbell transformer.
If that power supply is intended to be hard wired, why don't they provide a bushing on it, to mount it in a 1/2 K.O., like a bell transformer. They could make it out plastic, like the rest of the unit. Either snap in or lock nut.
I've often thought that small transformers were probably less of a fire hazard inside the box than outside, except that the cover should be vented for heat dissipation. However, without a barrier your install is a violation, so no matter how the fire started you are on the hook; for that reason (liability) I wouldn't do that. If you relabeled the transformer "class 1" and used nm for the LV side, I'd say it was compliant. I like the class2 transformers that have built in short ckt and overload protection.
You'll note that he was struck dead for this. No pity.
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