Yes, there is a ground inside the generator but not under the cut-out relay cover where the sparks are coming from unless I read it wrong.
All the electrical parts inside the cover should be isolated from ground.
The "ground" connection inside the generator is (-) negative AND chassis ground.

The other diagram is for a relay not mounted on the generator.
Attachments
Generator Diagram.jpg (28.46 KB, 109 downloads)

Last edited by buoymaker; 08/19/2021 7:09 PM.

"Adding CFM to a truck will only help at engine speeds you don't want to use."
"I found there was nothing to gain beyond 400 CFM."