Lets say the person who outfits there vessel with a different nav lights than what the manufacture put on there boat. And that person is subject to a safety boarding by either a USCG crew or a USCG Auxiliarist. And they ask to see there navigation lights energized. All they are looking for is the fact that they work, and provide the correct degrees of angle that is required for them. That is all. Now take the boat in the picture with what appears to be covered from the top navigation lights. I can almost promise those would end up on a written report and sent back to the CG sector office for review. At which time the owner of that vessel would most likely get a chance to explain why there lights are covered and have a chance to fix them. When the owner explains that it came from the factory this way. And hopefully the boarding officer has taken pictures and backs the owners story. Well then whoever made the boat gets a letter and a chance to explain how those lights are in fact within spec. Maybe the trolling motor has to be slid back for them to work, uncovering them? I have no clue. But there is not a boarding party out there that will ding you for changing the lights on your boat, as so long as you have functional correctly angled lights.
You can build your very own boat, and it can be a couple of logs lashed together with an outboard on it. You can set sail with your new boat and as long as you have all the prescribed safety equipment on board you are good to go. Lights, pfd’s, horn, fire extinguisher, throwable pfd etc… Just remember to also make sure you follow the rules of the road, and any local regulations for where you will be enjoying your time on the water.
Companies make boats all the time with screwed up designs etc.. They still have to follow a set of guidelines to do it. As manufacturing goes they are regulated, does not mean that they are always following the rules. Some are better than others. Usually lawsuits do not follow until tragedy occurs. I would not want to be in that vessel when it is ran over by something larger than it is at night because they could not see there bow lights. The stern light is great but without the bow lights it is extremely hard to tell which direction they are heading.