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A customer has 46% total harmonic distortion on his distribution system. Will that have a negative impact on the breaker, or will it cause other issues ?

STR and Micrologic trip units are designed to measure rms currents. That means protection is reliable whatever harmonic distortion.
Information I get on NS630 is THD 44% induce supplementary overheating of + 9%. In order to do not face overheating we recommend to specifically derate the circuit breaker to 0,95In.
Furthermore, harmonic order 3 could overheat neutral link, so we recommend to check neutral load is not excessive.
For further information you may need, I recommend you to have a look at H micrologic exploitation guide ( specifically dedicated for harmonic protection )

However we recommend to take care of neutral current as hamonic order 3 could induce overload in the neutral.
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