See the 2002 NEC for example in NEC Section
**[size=2][FONT=Times-Bold]348.12 Uses Not Permitted. **[/FONT][/size]
[FONT=Times-Roman][size=2]FMC shall not be used in the following:[/size][/FONT]
[size=2]FONT=Times-Roman In wet locations unless the conductors are approved for the speci[/FONT][/size][FONT=Times-Roman][size=2]fi[/size][/FONT][FONT=Times-Roman][size=2]c conditions and the installation is such that [/size][/FONT][size=2][FONT=Times-Roman]liquid is not likely to enter raceways or enclosures to which the conduit is connected[/FONT][/size]
The way in which the product was installed in this picture was never intended, and that rule has been in the code, formerly in Article 350, since the late 70’s.
I agree that it should have never been permitted. I was happy to see the rulle deleted!
Please research the actual text so you will be able to understand the concept that was intended when that rule was added.