How does this look, and any issue of AC out feeding AC in of an inverter/charger?

Here is my planned AC input arrangement which will feed a DC charger for my Victron AGM starter battery and a Victron 1600W inverter/charger for my house Lithium. However, one could in theory select inverter AC input on the selector and have the inverter/charger switched on as an output, creating a loop. Is there a problem with this or will the inverter/charger just go closed circuit as I have read reports of elsewhere?