GFCI at junction box near panel?

[Home Despot]

I purchased a house built in 1955, much of it with ungrounded, cloth-sheathed NM cable. The main panel was upgraded and beside it is a wall of junction boxes connecting the panel cabling to the original cabling. Would it be acceptable to install GFCIs in each junction box (with consideration given to box capacity) to protect all the branches downstream?

Another question: I discovered replaced receptacles which test positive for ground. Turns out they jumpered ground and neutral on those outlets--and they were done by an electrician. Seems fairly common in this area. I know it's not code, but is there a specific reason one might do this--other than to fool the outlet tester?

Thanks very much.

 

[Little Bill]

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