magic smoke escaped from my chinese VFD

[EddyCurrent]

How long is the cable between vfd and motor ?

Edit: I see from a previous thread you mentioned 5.5m, that should not cause any issues. Long cable runs could give you flames at the vfd.

Whats the full model number of the vfd ?

I think those red wires in the photos are the ones leading down to U,V,W terminals so my advice would be to check the spindle motor wiring for short circuits. This could be either inside the motor windings, the plug/socket on the motor, the motor cable.
Before you do anything, disconnect the wires from the U,V,W terminals and check the wire using a multimeter on ohms. This is because sometimes if you start at the motor end, just moving the wires can take the fault away and you will think it's fixed. With the meter connected move the wires around to see if a short circuit comes and goes, it could be between any of the three wires.