I could be wrong, but I'm pretty sure you're way off. The wire taped white and landed on the neutral lug is and likely always was the neutral.
His panel has no ground, the broken wire is clearly smaller then the neutra and is taped green on the other end. The reason the conduit is rubbed is from where the ground yanked out of the ground lug.
I'd question the integrity of all terminals on each end at this point. That 100A in the sub may be damaged from the strain.
You are correct, The panel is set up how it has been forever, besides the fact that I trust the operator, my wife was there when he opened the panel, and I have cameras in front where the main panel is, there’s no way he was in that panel without me knowing. The ground was pulled caused the damage to the conduit, and the one leg is likely damaged inside the conduit as well.





