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Here in NJ ( Where I think we are too crazy about codes sometimes) That kind of install is done and allowed all the time. The only difference is where the RX enters into the sheetrock above an electrical panel if it is in the garage. The Building inspector wants to seal off with insulation for fire rating of the garage.

A model installation if ever there was one. Really Ed should be a model! Seriously I don't know what the fear is with this installation. As Peter pointed out could be RPS. "Romex Phobia Syndrome". As for that amendment, 1/2 drywall for physical protcection? I'd rather have the romex visible.

Here in Oregon,Having exposed romex like that has been a violation for years.
It use to be accepted up until the 70`s until someone figured out that exposed romex ends up in some cases getting damaged from leaning up and hanging there tools on the cables. That install would not fly here.