The rack should always be setup with reds at the front as illustrated by the picture in the rules. If it is not setup as per the picture, then it is wrong. Like it or loathe it, that’s where it’s at.
Why does it matter that the reds are at the front? It’s because of the rule described further down the page regarding the order in which balls are replaced behind the eight-ball spot if they need to be. The reds are the dominant colour and are always re-spotted before the yellows, and for this same reason, the dominant colour group goes at the front of the pack on setup.
Just as in the World Rules, there is NO penalty for breaking the pack if the balls are not setup correctly. It is the referee’s responsibility AND all players involved in the frame also to ensure that the balls are set correctly. If they are not, and the break goes ahead, then everyone involved with the frame has accepted the rack for what it was, and the frame simply continues as normal without any further actions.