There is possibly two different issues with the needle position.
From your last picture, it looks like the unit #6 which holds the needle has slipped down.
The top of the needle should be all the way UP in the needle holder shaft.
Re check the needle position and the screw holding the needle. The screw (right hand) side can get striped by over tightening.
It needs to be snug but not over-tightened.
Our dealer talked about this problem with unit #6 at one of the maintenance classes. I don't know the exact cure for position #6 if it has slipped out of place.
Good luck!