I heard today that an FAA Inspector gave the guy in the left seat a .299 PIC check 2weeks prior to this flight, even though he only had an SIC type. Apparently the inspector missed it.
What a $hit show.

Would that incorporate a removal of the SIC limitation and the check is in the mail?

Nooo, a line check is not a type ride.

Some interesting current comments by JD Aero (legal firm) on illegal charters or "134.5" charters.

Gray Charters become a Federal Case | JDA Journal

I know of an inspector who conducted a .299 and missed the fact a .293(a) was not completed.
Memphis (?) FSDO.
He also fell asleep observing a company check airman conducting an oral.