Even if the play was designed to turn inside Penning failed to establish inside leverage at all. He doesn't fire across the ball to get inside his defender whatsoever.
He lost so bad to the point the defender won the leverage battle with both arms extended to disengage.
Also take a look at the bottom of the screen and you'll see our TE and WR double the defender in the attempt to secure the edge. Why would they be attempting to secure the edge if this is a designed inside run?
Inside or outside doesn't matter Penning got completely destroyed.