Dangling modifier

[jiaruchan]

On seeing this kind of phenomenon, the first step is to report it to the manager.

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I want to know if the sentence has made an error of dangling modifier. Is that acceptable in spoken English? Thank you.

[Raymott]

On seeing this kind of phenomenon, the first step [to take] is to report it to the manager.

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I want to know if the sentence has made an error of dangling modifier. Is that acceptable in spoken English? Thank you.

There's no ambiguity, and it's not a classical case of a dangling modifier.
I'd accept it, but I'd add 'to take'.
The first step to take on seeing this ...