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Feeder Wire - Wire Insulation is slightly under lug. Is this an issue?

last month
last modified: last month

This is a 2/0 CU Feeder wire coming into the main subpanel on a 200A service. There are no nicks in the copper wire and from the front side everything looks good.

But upon further inspection, the tiniest bit of wire insulation is under the lug on the back side.

Does this pose any type of threat for a bad connection or an unsafe electrical situation? Or is this completely safe and a non-issue?

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