Yes, there are several potential issues with this installation: Compromised Cable Integrity

Removing the uninsulated conductor can compromise the structural integrity of the cable itself. SER cable is designed to have all its components in place. Removing a conductor, even the uninsulated one, can affect the cable's roundness, potentially leading to stress on the remaining conductors and the outer sheath.

Listing and Labeling Violation

SER cable is listed and labeled with all its original components. Altering the cable by removing a conductor voids the listing, making the installation non-compliant with NEC 110.3(B).

Potential for Misinterpretation

Even though the uninsulated conductor is not being used as a neutral or ground, its absence might cause confusion for future electricians or inspectors. Standard practice is to leave unused conductors in place, properly capped or terminated.

Workmanship

Stripping the cable and removing the conductor is generally considered poor workmanship. It looks unprofessional and raises questions about the overall quality of the installation.*

Safety

While the uninsulated conductor wasn't used for grounding, if the outer jacket of the SER cable gets damaged, the uninsulated conductor could provide a path for a fault, if it were still there.

Better Alternatives


Use a different cable

If a 3-conductor cable is all that's needed, using a 3-conductor SER cable in the first place would be the correct approach.2.

Leave the conductor in place

The best option is to simply leave the uninsulated conductor in place and properly terminate it, even if it's not actively used. It can be cut back to a reasonable length, insulated, and tucked neatly inside the panel.3.

Grounding Considerations: While the uninsulated conductor wasn't used for grounding in your scenario, you still need to ensure proper grounding and bonding practices are followed, using appropriate grounding conductors and terminals as per the NEC.In summary, while the installation might appear to function, removing the uninsulated conductor from the SER cable is not a good practice and likely violates the NEC. It's important to maintain the integrity and listing of the cable and follow standard wiring practices for safety and code compliance. Flag for review