ground wires wrapped around clamp, outside of service panel

Location
Vermont
Occupation
Property Inspector
Home inspector here, I see this once in a while and question if this has ever been approved? The EGC for the NM has been cut back and wrapped around the sheathing outside of the service panel. The wire does make contact with the metal clamp, which is in connection with the service panel. I call it out and say that it does not ensure that the connection of the EGC is good enough to carry the fault current. Am I correct to say this needs to be corrected and has this ever been allowed.
TIA

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Yes it was done that way around here too but it was never code compliant so just write it up.

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Home inspector here, I see this once in a while and question if this has ever been approved? The EGC for the NM has been cut back and wrapped around the sheathing outside of the service panel. The wire does make contact with the metal clamp, which is in connection with the service panel. I call it out and say that it does not ensure that the connection of the EGC is good enough to carry the fault current. Am I correct to say this needs to be corrected and has this ever been allowed.
TIA

How do I upload a photo?
You may have to reduce the picture size.
 
Seen that on early transition from old 2 wire to sub-sized grounding rag NM at the receptacle or switch box but not at the panel. Mostly I see associated with the non grounding receptacle or one that had been changed from one of them to a 3 wire grounding receptacle. Op is correct in that the effective ground path is questionable at best. Also have seen the screw of the internal NM clamp on the metal Romex or BX gangable box having the EGC wrapped around it.
 
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