What's wrong with this picture?

Local "instructors" are teaching this. It introduces two unnecessary links in the belay chain. This guy understands that the clove isn't stable, his solution is to tie an overhand cross loading the carabiner and wrapped around the locking collar so it can be loosened. Each choice may seem innocuous, but they add up, more importantly, it shows sloppy thinking, inattention to the details that keep us safe.