Elayne, on your side view photo it appears that the foot is not fully seated on the arm coming out of the machine. If you look at the part where the screw is inserted, you should be able to see that the part of the foot held by the screw is farther away from the "Post" at the top than at the bottom. This results in the foot part not being parallel with the surface of the machine. Can you see what I'm talking about? Resetting that so that the foot rests snugly against the post may change part of the problem with your foot sitting so high...
I noticed that the feed dogs are up and in place in the photos and should be down for FMQ...but you indicated that you knew the difference so guess you put the foot on just for photos.