It doesn't appear to be in the R position. However I don't use shift levers like that. So without me being able to see and manipulate them myself, I won't claim that for a fact.

Whether it's a good LBS or not doesn't mean anything. We don't know the context of what you mean by they set them up. You mean they installed them on the bike for you and then you took them off to make pictures? Or did they install them on another bike with a different brake type? Or did they just order a pair of shift levers for you and then made certain they were shift levers.

Perhaps the LBS knows something about the stuff going on your bike that we don't. You should ask them about that if you believe that setting this was something they were supposed to do.