Ok, I have to disagree with the inspectors here. Sorry about this, but you can't fail them for shotty workmanship.
If we remove the shutter, from the picture, say it was never there, could you fail them for workmanship? NO. From the picture, it looks like an everyday installation.
Now, let's say the electrician does his job, and then the next day, the HO installs the shutter. Is it the electricians fault? Once again NO.
To blame the electrician for shotty work, would be a slap in the face to the electrician. Blaming whoever put up the shutter, would be the appropriate avenue.
If the HO wants a shutter there, pay the electrician to pull another permit, pay him to relocate it, and pay him to have it inspected again.
I feel the electrical inspector, should have put a hold on the inspection, not red tag it.
Dnk......