In this specific example, since a sub-type always has a single type, and a piece of equipment always has a sub-type, then it would make sense to omit the relationship between equipment and type.
If the sub-type was optional, or there was a many-to-many relationship between sub-type and type, then you obviously need to keep the equipment/type relationship.
The only problem you'll run into is if you try to enable cascading delete on all three relationships. SQL will refuse to create the foreign key constraint, telling you that this would cause cycles or multiple cascade paths. To resolve this, all you need to do is disable cascading delete on the equipment/type relationship.
Entity Framework Fluent API - Relationships - Enabling Cascade Delete[
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