That chain looks too short.

Is this a 5 speed? IOW is there only one chainwheel in the front? Or is it a ten speed? If it's a 5 speed there's no need to have the chain that short. How's your chain deflection angle? That can be an issue. Also, check alignment of the hanger, pulley cage, etc.

If everything else checks out, try a different chain. Measure it first, as suggested. Might be worn out. I rarely use the same chain for more than a year. Depends on your mileage of course.

+1 on using a longer piece of housing. It's ok as is, but my preference would be to add about 3/4". Try to use ferrules also. It will help.