Questionable wiring splice in sub panel

After inspecting a manufactured home that was built in 1977, I have some questions about a wiring splice that I found inside a sub panel.

A 100 amp breaker in sub panel #one feeds a 20-amp breaker in sub panel #2 for the furnace. A thicker gauge wire is spliced to a 12 gauge wire with a wire connector in sub panel #two. The 12 gauge wire feeds the 20-amp circuit for the furnace. Is this a defective installation?

Sub panel #two is also a Sylvania panel.

I think that the Square D breaker in the Sylvania panel #one is a defect since it’s a different brand.

I will attempt to display the photos below starting with the main panel at the exterior wall of the home, and then moving downstream to the second two panels that are inside.

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