All the wiring is internal in the same cabinet and grounds are the same.
Is the first setup dangerous because it bypasses the bkr?
I have someone telling me that the first circuit if short occurs in relay will cause uncontrolled voltage on the ground which would fry other components, but wouldn't the breaker still trip and open circuit prevent damage?
I understand that you don't want to do this if for instance the wiring to the relay went to a different cabinet and you grounded it at that location but I don't see the issue here.
I am not expert though so looking for help one way or the other