NFPA 70E says that "design" and "condition of maintenance" should be taken into account for arc flash hazard analysis.

For equipment with over-dutied interrupting ratings what is the proper approach for an arc flash hazard analysis? As in what was the intention of NFPA in incorporating design, or lack thereof, into the analysis?

I suume you mean your available fault current is > the AIC rating of your breaker? If so I would not assume that breaker is an OCPD at all.

The 70E is not a design or instalation standard, that is what the NFPA 70 is for (NEC).

Good question, interested to see what others do in this case.

If you cannot find an acceptable method to lower the available fault duty, then I would replace the equipment while there is still something to replace.

NFPA 70 should not be considered a "design standard". I would classify it more as a "minimum requirememnts installation guide".