The requirements of 314.16 can’t be applied to terminal housings supplied with motors. The Fine Print Note states, “For volume requirements of motor terminal housings, see 430.12.”
Per 430.12(D), “For motors with larger ratings, greater number of leads, or larger wire sizes, or where motors are installed as a part of factory-wired equipment, without additional connection being required at the motor terminal housing during equipment installation, the terminal housing shall be of ample size to make connections, but the foregoing provisions for the volumes of terminal housings shall not be considered applicable.”
This installation is also missing a bushing. See 300.4(F).