What’s Wrong Here? Hint: Keep Your Feet on the Ground

I don't think a Romex connector is listed as a suitable grounding apparatus for a box-or anything else for that matter.

Also have dissimilar metals

NEC 250.50 Electrodes include a metal underground water pipe in direct contact with earth for 10 feet or more, a metal frame of a building or structure, a concrete encased electrode, ground rod, or a ground ring.
NEC 110.14 Conductors of dissimilar metals shall not be intermixed unless the device is identified for the purpose. Listed
anti-oxidant compound shall be used on all aluminum conductor terminations, unless the device manufacturer states that it is not required.
NEC 110.14(A) In boxes with more than one grounding wire,
the grounding wires shall be tied together with a “pigtail” attached to the grounding terminal of the device.
NEC 250.64(C) The grounding electrode conductor shall be continuous, securely fastened and protected from physical
damage.
I also wonder if the pictures intended purpose was a equipotential ground? if so it should be directly to the box housing with proper approved bonding device.

Also, what about the NM cable running trough the wall hole? Is this not a violation?

Sure you can just bond the neutral to the ground lug on the device.