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I agree, better to fix it no, rather than add to the misery.
No idea what panel is installed or whether parts are still available. Not going to spend any time looking at it.
But. a licensed electrician could sort it out. Change the guts, change the whole panel, add a disconnect and fix the deficiencies in that panel... I'll leave the what and how up to the OP and his electrician. Not a big deal to fix it; I had guys I used to use that could sort that out in a morning and be on to lunch...
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