Since you are experiencing "SHORT CIRCUIT" I suspect
@Ray70 suspicion or something like it may be causing the faults.
From the symptoms it sounds like it might be a bad connection or cracked resistor.
A short circuit fault gets tripped when the K8 Overload/Short Circuit relay thinks there is a SHORT CIRCUIT condition.
Details in a bit..
For each leg of the genset there is essentially a CT and Burden resistor which generate an AC voltage proportional to the load on each leg.
Each of teh 3 voltages are supplied to K8 so it can monitor for any Overload or Short Circuit conditions
Normally the AC voltage generated is between 0 and 5.6 volts AC. This represent 0 to 100% load on the corresponding leg.
At 133% Load the AC voltage is 7.5 volts.
A load of 130% will cause K8 to trigger an Overload after 8 +/- 2 minutes. If the overload is greater than 130% K8 will trigger an Overload fault quicker.
The time delay of the overload fault is inversely proportional to the amount of overload.
A SHORT CIRCUIT fault is triggered when sensed CT voltage is 23.9 volts, which is way more than the 7.3 volts of a minor overload.
The voltages above are generated by the CT and Burden resistor circuit. The CT outputs an AC Current which gets applied across the Burden resistor. That resulting current flow across the resistor creates the AC voltage across the resistor that K8 monitors.
If a Burden resistor or associated wiring, connectors or switch contacts result in the Burden resistors resistance to no longer be in parallel with the CT the resulting voltage will skyrocket causing K8 to throw a Short Circuit fault.
Here is a diagram showing the interconnect of the CT's and the Burden resistors. It does not show specifically all the wires and connectors that connect everything together. With the set in 120/240 mode CT3 gets both R12 and R13 applied in parallel across CT3 by way of a set of contacts in S8.