I have a delta-delta xmfr feeding a 240V panel. 2 phases to X4 (neutral) provide 120V, the 3rd phase, or Hi leg will not produce 120V to X4.

My question is around acceptable practice. Can the neutral (X4) be run to the panel and the 3rd phase marked as "Hi Leg do not use for 120V single phase". I've seen this done but I'm wondering
1-Is this a code violation?
2-Is this "good" practice? Or should 120V just not be fed from this panel. Don't run the neutral (X4) to the panel and therefore no mistake can be made?

Thanks