I have seen many service equipment panels that are just plain wrong, but had just been passed by a local AHJ inspector.
That’s why I don’t bother citing code (and am, in this state, prohibited from doing so), I just point out national standards, like the NEC, but only as a national standard, as also mentioned in our state law.
Inspected a new townhouse in a small local town. They had only accepted an old NEC and had many local variances to the NEC. No GFCI or AFCI protection. It was ‘code’ (according to the local AHJ) but was dangerous (or, at least, not as safe as modern standards would have it).
Again, the client (and his lawyer) were confused. As usual, they believed that there was no higher standard than the village code. I explained the realityies of life (and politics) to them for about 20 minutes, and they finally got it. They decided that they did not want to buy a house where the builder had so little regard for their safety.
A tough row to hoe, we have.