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Hello .. you are within code with what you have described
the 200 amp breaker is too big for the circuit ,, but the circuit is protected with the 100 amp fused disconnect at the AC unit
Rich are the 1/0 wires large enough in view of the code requirement that says you can derate the wire size 125% for a motor load.
Yes .. I believe the 1/0 are good for about 150 amps ,, off the top of my head ..
you did not mention a ground wire with the feed wires ???