The story here is an ex-sconse location. Each of these wires has had the other end tied off H-N-G in the same manner, and taken out of the serving box(s)
A proper burial would be to remove the cables from the building. However in many cases, this is not possible. Shorting the h-n-g together would "make it impossible" for this conductor to be used in any manner. As far as the wire-nuts not being in a J.B., I would tell the electrical inspector that since both ends are shorted, the V and VA are limited to zero, and therefore it is a class 1 or class 2 circiut
"Ok Mrs. Smith you'll need a demolition crew and a drywall crew than a painter. I will have to remove this abandoned wire from your house. No no it is for your own good." Just mark both ends and bury it.
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Just mark both ends and bury it.
