Not at all OK. Did your contractor remove the doors for installing the boxes? Looks like he did and then used a power drill to over tighten them, along with being "creative" with replacing the screws. He needs to buy you new hardware and maybe new cabinets depending on if that's the best or worst of the lot. But, those are Armstrong after all. Less than top quality hardware is to be expected. But you can't have He-Man applying amplified force to them that's for sure.

Thanks hollysprings!
The crack in the picture is typical, are several off them in several cabinets. And I am enclosing a picture of the screws he used. I not a pro, but don't they seem kind of small for the job (7/8 of inch)??

So, what are your thoughts - replacing the hardware or the cabinets?

It's hard to tell from the pic but it looks as if there are two different types of screws. If so the original should be used. I'd say holly got it right -over torqued. 7/8" is fine.

But the cracks must be repaired. To do that:
-Remove the hardware
-Then a small1/16" hole is drilled at each end
-Replace the screw to spread the crack a little
-Masking tape is place over the crack and rubbed down well, masking NOT blue painters tape
-Then wood glue is injected into one hole using a plastic syringe ( from a hobby shop) until glue come out the other hole
-Remove screw and clamp firmly but gently with a quick grip clamp
-Wait a few hours to reinstall hinges.
Stronger than original when done properly

Has nothing to do with the manufacturer, and everything to do with the installer. Looks like he lost the original screws, substituted the square drive ones that were longer, and used too much force when screwing them in. Fix like Jakuvall says. Someone other than the guy who messed it up in the first place.