transformer

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Normally ther is no problem.
You don't want to connect your XO on your 208 side.
 
Probably ok. Of course you will not have 277 volts for anything, and the system will be 480 to ground (or considered 480 to ground if ungrounded, and then you need a detection system), so maybe a little more potentially dangerous to personnel than a wye would be.

A chance of inrush issues too, depending on the winding style. I don't know how likely that is to be a problem though.
 
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