Power to subpanel

This is an older ‘vacation’ type house, 1978.

pic 1, service panel - lower right breaker is labeled as inside panel, rag-wrap copper

pic 2, GE PowerMark Gold subpanel - the rag-wrap is attached to a 50 amp breaker. Different conductors feed the panel. ??

Didn’t make sense to me. Gonna call for evaluation by electrical guru.

Am I missing something here?

I think that you made a good call as there are **some **problems in that remote panel

Good Call

If I had to make a wild guess I would say they are back feeding the sub-panel and the MLO lugs are being used to feed something else. Where does that wire go?
To start with the rag wire is only 3 conductor with no insulated neutral. I imagine we can go from there to fill out a page of violations