Would you agree that #4 wire battery cables is sufficient for a Universal M25 Diesel with a total length of about 10' with no inverter installed?
In terms of starting the motor they "will work" but in terms of starting it well, with minimal voltage drop, they are undersized. Builders can get away with this because the ABYC does not address starter cable sizing. Some builders who installed that engine used 1/0 wire and others, on the same exact engine, used 4GA....
Morris Yachts for instance installs 2/0 wire on a similar sized motor. 1/0 or 2/0, depending upon length,would be my preference and the starting difference would be noticeable.
With your circuit I am guessing the 10' is one way? If so then your round trip distance is 20'. For a 3% voltage drop for a 160 amp starting load you'd need 1/0 wire.. 4GA wire is a 10% voltage drop or almost 1.3 volts on a fully charged battery. When you consider that the starting load can suck the battery well below 10 volts adding this additional 7% voltage drop is certainly not the best scenario. I tend to try and size wire for a 2-3% VD on starting circuits.