The serial appears to be 202WD #2. My guess is it would be either assembled or deactivated at 202 workshop for issue to the museum. The sling looks too wide for a SMG...looks more like someone stuck a bren clip on the end of a FN sling.
That is not true, and contrary to the CF museum manual which states that small arms shall not be altered. I work for a CF museum, and while some sacrilege has been performed on some of the firearms, for the most part, our weapons are unaltered. I did see an anomoly to this when we recently ordered another SMG C1 and received a solidly welded up example.
A few years ago we got in a C1 105mm howitzer. It went through base maintenance first for pre-issue checks, and they started welding it up. Our artifacts manager went over with the manual and they had to un-do their welds. When it comes to the larger stuff, it can be issued as an artifact or as a monument. Artifact is un-altered, monument has every moving part including the wheel nuts welded in place.
Saw plenty of 30 round magazines in service for the C2. Not uncommon at all.