There's not necessarily anything wrong with it.
The internal master socket looks like an NTE5a with an Openreach SSFP.
In the outside photo, of the two circled white cables, one would be going from the incoming underground line to the master socket, and the other should be connected to the front plate of the master socket, taking a telephone extension elsewhere. With the SSFP filtering the extension at the master socket, that arrangement is fine.
But it depends what's in the grey BT66 box. If the white cable on the left is connected to the incoming line inside the grey box, then it would be a problem (a bridged tap). If the socket it goes to is completely dead, then it must have been disconnected and is not a problem.