With your Presser Bar down, and your Needle Bar up (as shown in your photo), there should be a gap between your foot and your fabric. Your foot needs to be down only while the needle is in the fabric and on its way up to exit the fabric. Once your needle is free of the fabric, your foot should lift off of the fabric.
Since your foot is still down when your needle is up, maybe you can adjust your Lift Arm on your foot by bending the arm down a little where it attaches to the rod on the foot.
CD in Oklahoma