The drip edge is not behind the gutter, the gutter goes up behind the drip edge and the nails are going thru both, and the "hidden" type gutter hangers. The nails they used are galvanized with rubber washers so water can't get past the nail head.
I redid the soffits and facia prior to the gutter guy and the facia board is cedar covered with aluminum facia panel. It looks like a good job, its just that bending the drip edge in like that has me somewhat concerned. I am going to call them and ask if this is standard practice and what they think.