Thanks Justin. I got 4 AWG from other diagrams and from another RV guy who showed that he used 4 AWG. I will adjust to use the proper wiring, the last thing that I need is to be undersized. Much appreciated.
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Leon, Justin is absolutely right.
Bear in mind when you look at my schematic that there is no Inverter hence load is normally limited to 50A with an occasional surge of 100A when I use the jacks or the starter for the Generator.
Your inverter depending on which KVA model you choose will draw hundreds of amps continuously. Thus is when cables get hot. The multiplus manual gives guidance on cable sizing and the Victron Tools app gives good info, but it is worth double checking your battery to busbar and bus bar to inverter cable sizing with an expert once placement and wire run lengths etc are all determined.
Do your calcs and measure you cable runs and then run your calcs Past the community. 
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Thanks Les and Justin. I updated my diagram to show 4/0 and 1/0 for interconnects. I will definitely measure cable runs, especially since the batteries and Inverter will be in separate compartments, so distance will play a role.
It’s possible that the other RV-er was running a 48v system? Higher voltage = lower current and less voltage drop, so can get away with much smaller wires, though at the cost of other headaches sometimes. Or they were running a lower-current system overall, of course… orrrr they did it wrong themselves, any of the above are possibilities!
At the end of the day though, no matter others’ recommendations or examples, always check your own calculations since it’s your rig and your responsibility if stuff starts melting.
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Thanks Justin. Rock solid advice, and you may be right that he has a 48V setup. I updated all my specifications to match your recommendations and after researching I saw that 4/0 is definitely what I need.