Question on Service Panel from today

Looking for some clarification on the Panel set up from today’s inspection please

  1. Service Panel has 100 amp OCP, but the Neutral bypasses the breaker and straight to Distribution
  2. Service Panel has disconnected Bonding Strap
  3. Distribution Panel has installed Bonding Strap

Question is, does the Neutral SE Conductor, by bypassing of the Service Disconnect in the exterior Main Service Panel now make the Distribution Panel the Service Disconnect?
And does the 100 amp breaker outside become just a “switch”
Or is this a Split Bus Panel?

Sorry if this sounds like a goofy or poorly worded question, I just confused myself by typing it!!!
Ps. I know about overheated SE Neutral at Dist. Panel, not sure if that matters in the context of primary
question though, but maybe it does??

The first 100 amp CB should be the service disconnect. The neutral is required to be installed in a way that it can be disconnected. {NEC: 230.75} This is usually accomplished by connection to the neutral bus via a terminal. The neutral bus also must be bonded to the enclosure.

Thank You Robert. I always appreciate your insight. That is what I told the Buyer but he is an Electrical Contractor and he said it was fine as is. Appreciate your help

You’re welcome. As you’ve noted there are several other issues with this installation that need to be addressed some probably not visible from the photo’s.