What sort of conductors/cabling is in use. Is it subject to any physical damage?

Sounds to me like it is already in 2" conduit? What am I missing?

It's 4/0 4/0 2/0 and is in conduit to the house. Because of a 45 located just outside the house, the conduit enters the sleeve cockeyed and would be a pain to get my conduit body aligned nicely. Sleeve will be foamed and will not be subject to any physical damage. I have seen electricians use a flexible corrugated gray pipe but it doesn't really seem so add any real protection.

Individual conductors must be installed in conduit of some sort. You must use some sort of listed conduit both through the wall and anywhere else in the house. You must make connections between any boxes or other conduit in use using listed connectors.

The gray stuff you're referring to is probably either liquidtight metalic flexible conduit (known as Type FMC). While it's metallic inside it typically has a gray plastic coating) or liquidtight non metalic conduit (known as Type FNMC or LFNC).
Neither of these can be used where subject to physical damage, but I suspect if we're talking a wall through to your basement, that such would not be a problem. The code however limits the use of this indoors to places where you specifically need either flexibility or protection from liquids or vapors.

Type LFNC however is limited to 6' (it's designed for short connections between boxes and equipment rather than for running conductors any distance).
Type LFMC does not have this restriction.

Frankly, if it's installed cockeyed, I just pull it back and install a neater conduit job. Otherwise, you'll have to put in boxes or fittings or bend the conduit to allow you to make the turn to get aligned with the framing despite the crooked thorugh-the-wall part.

This post was edited by ronnatalie on Tue, Jan 6, 15 at 11:43