Rod, welcome to the forum!
If the question is whether you can use the 208-to-208Y/120 transformer as an isolation transformer, the answer is yes. Plus, the secondary neutral provides a most convenient method of bonding the SDS unless you plan to float it.
As to whether the VFD would be happy with that as a supply, I can't say, having little experience applying them. Others here will no doubt provide more info. (Just try and stop them.
) Just for starters, what is the load current?