OP, I would flip the stem and rotate the bar first to get the right hand position. The way it's currently set up, there is no way you can ride the drops without hurting your wrists.

Another thing you may want to look into, after you dial in the saddle height and fore-aft position (THE most important aspect of bike fitting) is to check the crank arm length. You have a few mms to play there also.

I alway think of bike fitting as finding the right length for each side of a triangle, where the end points are the saddle, hoods, and bottom bracket. Changing the length and/or angle of one side typically will necessitate the changes in other sides/angles also.

The end result should be personal, depending on what position, hoods or drops, you ride the post, you should be well balanced on the bike without excessive pressure on you hands, knees and lower back. It's a series of trial and error.

FWIW, from the pic, the frame looks fine.