Our first positive result for an insulation breakdown between input and output was on a laboratory power supply in a school in the 1990s. The Radford Labpack was a multi-output bench PSU of the 1960s/70s which, although generally well made, had a flaw in the wiring loom construction. Amongst the outputs was a 6.3V 8A floating (not earthed) supply for valve heaters and optical ray lamps, which unlike the other outputs was not separately fused, relying on the mains fuse to protect the transformer. Unfortunately the wiring in the loom was the wrong gauge and could not withstand the short-circuit current for long if this output was shorted by the user, resulting in general insulation damage to the loom. One possible result was the 6.3V wiring melting into contact with the mains line to the fuseholder, making the 6.3V sockets live with mains. As the secondary was floating, it continued working, with the experimental apparatus that students used to connect with bare 4mm plugs all being live with mains on one side and mains +6.3V on the other.
We sent out a warning to all organisations using our testing service, to send all units in for inspection and modification (the manufacturers were no longer in existence.) Dozens of units had insulation damage, although I can't remember how many actually had the output live with mains. I remember the head of the PAT department who might have been the first to discover the problem, having a rather heated conversation with one of the teams whom he suspected of not always testing insulation to PSU outputs. 'Why wouldn't you ******* test them?' was his question.