You have a custom locate configured such that a feature class/table looks to a specific field on a related record to return results from. However, instead of returning a limited number of records, it returns all records from the feature class.
You have configured a query to look at the feature class Transformer and it's related object Transformer_Unit. The query is to search a field on Transformer unit named 'xfmr_unit', and you have it configured to return the OID of the transformer. And, instead of a single Transformer being returned, all Transformers are returned.
It is possible that there is a Definition Query on a feature class in the .mxd from which the mapservice is published.
ArcFM Server does not support definition queries, any such locate (dependent on a definition query) will always return all un-filtered features in that feature class. The definition query will need to be removed from the feature class and the .mxd republished.