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No. The mech has a circlip which I think retains the main screw. I guess this is what makes it appear as if it's not all the way in. It is (was) definitely screwed in properly.
What I mean by the frame blocking it is that the surface of the mech that interfaces with the bike is larger than the hanger itself. If I were to somehow move the hanger inboard, the mech could not follow it because the mech would hit the frame.
You can see on my first pic that the large silver disc on the mech would hit the hanger bolts.
Can’t tell for sure from the pictures, but is the derailleur screwed in all the way? The 1st pic looks like it’s not.
Edit: looks like the derailleur isn’t screwed in fully but it’s already touching the drop out. Is that what you meant by it will be blocked by the frame if it has to move inwards?