I popped the inverter... No idea what happened yet. I'm exhausted so i just disconnect things so that it's safe and going to give the project a bit of holiday rest.
What I do know, the AC passtgrough on the Freedom HF 1800 inverter worked fine when i tested it. AC passed through and provided 120VAC just fine.
I connected four 12V AGM batteries in parallel, the battery voltage reads 12.93V. i added a recommended 250A DC circuit breaker in line between the batteries (+) positive and the inverter's (+) positive terminal. All wires were color coded black for negative, red for positive to avoid possible confusion or wire crossing. 1/0 AWG wire to handle above max possible load. Verified all house circuit breakers were turned off. I turned on the inverter, it sparked, let out smoke, and beeped E-03 at me until i was able to get it to power down and i turned off the battery circuit breaker.
Double verified the negative from the batteries went to the negative of the inverter, positive to positive. Verified with a cool m volt meter as well. No idea what went wrong.
Only other device in the system, aside from the power and ground wires to the RV as a whole, was my new solar controller. Also verified polarity and it was near sunset so the solar panels couldn't produce much power at that time anyway.
I'll do more investigating after the holidays.