No, this is not an acceptable installation.

Conduit Termination at Transformers

According to the National Electrical Code (NEC), conduit must be terminated at the edge of the transformer enclosure, as you have done. However, the conductors inside the conduit must continue into the transformer.

XHHW Conductor in Conduit to Transformer

XHHW conductors are permitted to be used in conduits to transformers. However, they must be continuous from the last point of support (i.e., the point where the conduit terminates) into the transformer.

Allowed Entry Methods

There are two allowed methods for entering transformers with conductors: Insulated Bushings

The conductors can pass through insulated bushings into the transformer.

Conduit Hubs

The conduit can be terminated in a conduit hub on the transformer, and the conductors can continue into the transformer through the hub.

Reason for Requirement

The requirement for continuous conductors from the conduit into the transformer is to provide mechanical support and protection for the conductors. Without continuous conduit or other support, the conductors could be subject to damage or vibration, which could lead to a safety hazard.

Conclusion

Therefore, the installation you have described is not acceptable according to the NEC. The XHHW conductors must be run in a continuous conduit or other support all the way into the transformer. Flag for review