Yes these where service conductors and yes once inside they hit a 1,600 amp main with GFP protection.
I think it is a good illustration of why the service disconnect is required to be located "nearest the point of entrance"
In this case there is I would guess 10' to 15' of service conductors inside before they reach the service disconnect.
It is a good thing the fault did not happen on the inside portion.
This service is 480Y/277 1,600 amp fed with 4 sets of 600 kcmil CU in 4" RMC.