3-prong dryer/range outlets are hot-hot-NEUTRAL
Not ground. Your "last guy" actually used the wrong color wire, which leads you to believe that third wire was ground. It's not.

I can see where this can be confusing, but just as there used to be "groundless" 120V outlets, the NEMA 10 is simply the "groundless" version of the NEMA 14.
What's the big deal?
The big deal is that neutral is the regular current return. It's supposed to be near ground, but if the neutral wire breaks between the appliance and panel, neutral will "float" up to 120V. That is normal, and that's why we insulate the neutral.
Simple loose connections or wire breaks happen all the time, and shouldn't make an appliance dangerous. But in the case of dryers and ranges, the 3-prong wiring procedure grounds the chassis to neutral (we would call that "bootlegging ground" anywhere else). This means a neutral wire break or loose connection guarantees the chassis will be electrified. And it's metal and sitting right next to a grounded washer chassis.
They were given a pass in 1966 when grounding was required for everything else. The rationale was that these sockets are rarely disturbed, so a neutral wire failure was unlikely. Eventually this accumulated enough of a body count for NFPA to act, and ban it in 1996. It's still happening because of legacy installations, but it's mis-reported as incorrect wiring -- when actually it was correct wiring that failed. Because usually the newspapers see it because someone sued the landlord alleging mis-wiring. The landlord is blameless. Wire failures can happen to anyone.