Not exactly what I would call a smart move. How many would consider this a wet area?
Typically this would not be a wet location. As long as the equipment performs as designed, it will not be a problem, if a leak were to occur, it is not a wet location, just a leaky location. 
Mount that :shock: puppy on the wall or put a wood block underneath it at least. Yes, it is a safety issue and recommended to be repaired.
I would call it out for lack of working clearance in front of it. Then it doesn’t need references to a wet location.
Not a smart installation. At the same time is not nearly a wet location. No more so than under ANY bathroom or kitchen cabinet is a wet location.
That is a NEMA 3R box rated for wet locations, it is just mounted wrong.