Greg:
My reference gives the conditions when the expansion fitting is required.
That was the purpose for the hint.
If the conduit was run in a continuous length from one enclosure to another underground, then the rule would apply.
The FPN gives other recommendations as well.
The mounting hole on the back of the enclosure here is not for the use as shown, nevertheless the installation was approved by someone who may not have any knowledge of what the 110.3(B) reference includes.
I am sure you are aware of what the UL White Book is and its purpose, if not see www.ul.com under regulatory authorities for the download.
I had expected this discussion to include some reference: “sunlight resistance, Schedule 80” and other items even related to the improper working space.
I guess its better to be in front of the students in a classroom and discuss this with the code in mind.
If this was on an examination, and the questions were asked as to what do you see here and how would you address the conditions, the answers would have something to do with pass or fail on that test, no matter how silly the rule or picture.