Splices sound like a sketchy approach. My generator installation has fresh cable from the meter to the transfer switch and fresh unspliced cable from transfer switch to the circuit breaker panel.
Off topic, but I did have a totally different weird problem once. Power goes off, generator kicks on and runs the house fine for a few hours. Utility power comes back on, transfer switch kicks back over and now the power is flickering. I go out and open up the transfer switch and there is a distinct smell and a sizzling sound. Turns out that a stink bug got into the utility power contacts when they were open and was now fouling up the connection. Switched back to generator and blew the fried bug out with compressed air. Good ever since.
Eric
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