More info since this thread appears to have generated some interest with over 20 replies:
House appears to have been insulated and original K&T removed sometime in 2013. Have found no trace of the MC cable as seen in the well pit at the house end, the MC likely cutoff and buried at house end, so no other house to well conductors other than the UF. No idea when the UF installed.
The new panel has a Jan 2014 WA state electrical inspection permit signoff sticker. The 'niceties' (such as no wire clamp on UF going into disconnect metal fuse box) in the well pit were not seen or addressed as no new work done there, so UF cable must have been before 2013. House was built in late 1940's. Well casing is not original, 1990's it appears.
Our own granddaughter and only great-grandkids will be living there, so safety a definite issue but not concerned except for the UF ground not being identified in the main panel as current carrying. -- in case one of the GGKs tries to do some DIY when a young teen
. I intend to put white heat shrink over the entire UF ground wire in the panel, which isthe main true safetiy issue anyone has so far identified.
The house has changed ownership 4 or five times since the 1970s, sometime since then a BI apparently did identify the gross problems with the shed - old really bad stuff which I have stripped off --- there was a bunch of old non-B NM nd lamp cord stapled with fence staples to the outside feeding now dead fixtures, including NM stripped of outer jacket and going into dead ungrounded metal boxes -- assume at one of real estate sales the shed was disconnected of electrical and subsequently the 3/4 RMC added (which is in good shape). There is also a non-connected pigtail of TW in old corroded 1/2 EMT in the well pit that I assume previously fed the shed.
I had considered adding a transformer in the well pit to feed the shed, but since a wet location, deem the risk of such worse than present situation and did not want to totally disconnect the shed used for mower and bicycle and garden tool storage.