I have been working on my son's old Lannutti MTB. When going to refit the rear wheel, I noticed that it sits very far forward in the dropouts on the left side. This is because the derailleur on the drive side has a bracket which fots over the dropout reducing the size on that side.

Is this set up ok? To me it looks a bit insecure on the left side and may shift if the wheel hits a bump?

Derailleur bracket over dropout


Position in left side dropout