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Is the manual motor protector short circuit release based on the actual FLA dial setting?

The short circuit release is related to the max rating of the device, the dial has no influence on it.

The XT line of manual motor protectors are fixed at 14x for the motor inrush allowance. This value cannot be modified. 

For more information on the new IE3 requirements, check out this document: XTCE I3 motors publication