Is it an autotransformer, maybe?
Nope, the OP showed us the tag earlier, it's a standard stepdown unit, 480V Delta primary x 208V Y secondary. Hooked up in reverse.
I see it as a case where the pulling crew, installed a 5W 208Y feeder, they were not sure on what the equipment needed, so they pulled all 5 conductors, to cover themselves.
The transformer purchaser, also not sure what was exactly needed, ordered a standard Delta/Wye stepdown unit, cause their standard and readily available for less money. A Delta/Wye, 208/480 step up unit is what was needed, but those have lead time, and cost more generally. So you get the standard unit.
Then along comes the terminator. Faced with one too many wires on the input and output circuits, and no where to properly terminate them on the given transformer terminals, takes a guess, and splices the neutrals through. But what we haven't seen yet, is how those are treated at the load end, how are they terminated, or are they? It makes a difference.
Now we have the common of the 208V wye service transformer, substituting at the load end, for the common of a 480V delta setup transformer. In reality that delta output coil is floating, it has no reference to the ground or the 208V wye service common.
Any current placed on the load end neutral or ground, be it load operating current, or fault current, has no good low impedance path, to get back to that delta 480 coil. It's not trying to seek the 208 service common, it's seeking that isolated 480 delta coil. The only path that current has, to get back to that isolated delta coil, is through the magnetic coupling of the step up transformer. Its a high impedance connection for sure, and has a long way to go to get there. From the fault, back to the service, then back to the step up windings.
It's a setup that won't conduct any real fault current, or operating current. It will conduct some, but nothing useful. What it can do though is setup a ringing high voltage on the system though, when there is arcing fault current at the load end. You have lots of capacitance and inductance with the added wiring length and transformer coils, add in an arcing fault current as a spark generator, and you can result in a ringing voltage on the system.
As it sits the 480V system is running isolated, no Wye point to ground, corner not grounded, and no ground fault detection. There is no good way to get fault current back to that delta coil. It does have a way to start resonating though with arcing current. That's why the code says to corner ground it, to give a low impedance path for fault currents to flow.Then it can trip the overcurrent device properly on a the first ungrounded line fault. Trying to use the option of ground fault detection is really not an option in most cases. You need trained personnel on staff to monitor and react to the first fault indication. Most installations do meet that requirement.
So you end up with corner grounding to meet the rule. Electro mechanical controls and motors have no problems with corner grounding. But electronic loads like VFD's, can take exception to it. Most of them are designed for a wye input, the MOV surge suppression system in the drives use that wye common for a reference. With a corner ground these MOV's can see more voltage than they are rated for. Their rated for line to common voltages, not line to line. Combine that with the possibility of high voltage ringing on a ungrounded coil, and you can easily see drive damage, sooner than expected.
The better case would be to use a proper step up unit with a wye on the output side. 208V delta primary/ 277/480 wye secondary. Then you have a neutral, a symmetrical voltage reference to ground point. Connect that derived neutral to the building ground electrode system and you are good to go, everybody's happy.
With corner grounding, the loads compatibly need to be investigated, and it requires different wiring techniques and more knowledge on how to deal with it.
MTW