Originally Posted by
xybaby
The upper pulley (the wheel) looks like tilted so it is not parallel to the frame. The main problem is the derailleur has difficulty to engage to the smallest gear (highest)
This is just about
100% confirmation that the hanger is bent in. Before the limits were in the right place and you could shift the full range. With the hanger bent in the RD is now inboard of where it used to be, so the outer limit is too and that's why you can't shift to high.
What follows in critically important
With the hanger bent, and the RD now inboard of where it started (when the limits were adjusted) the inner limit is now also inboard. That means you're at a real risk of over-shifting beyond the low gear sprocket and into the wheel. If you;re lucky only the chain, if you're not so lucky, the RD will sang a spoke, costing you an expensive repair.
DO NOT RIDE THIS BICYCLE until you've at least corrected the inner limit screw. Or feel free to disregard this warning, but don't post here if things work out badly.