Passenger side Half Axle

Have a problem. I whacked the passenger side half axle with it's short spline section into the trans. Whacked the short spline section and I thought it seated. Now when I went to check the fluid, I see this. I'm going to remove the wheel, calipers, strut assy, etc and then try to whack it in all the way attached. Any other ideas. Thanks.

Check the lock ring, pull it back out first.

Is it supposed to be recessed? I looked at my old picture of trying to pull that shaft out - passenger side. See the picture. It is the old trans with the same spline. I pulled this spline out to put in my new trans. It looks like it sticks out too. Can anyone take a picture of their drive axles as it connects to the trans. Both sides. I want to be sure it is seated right. I have finished swapping motor and trans. Just this last step. Is there a cover I am forgetting? Can't believe that it would be exposed like this?

Also, with the wheels in the air , the trans does Not seem to lock the wheels? It shifts thru all the gears (engine off) but in park the wheels rotate. Is there an adjustment?

I think its mechanical lock, but If its low on trans fluid, would it cause this free wheeling in park?