Hi there guys.

I recently got bigger lo, so I thought I would just buy an adjustable stem, but it did not feel the way I expected. I took it down, put on the stock one and made some seat adjustments and I am posting a photo to see what do you guys say. Is my position ok?
I am 184cm height the bikes frame is 18.5 inches and it's a 27.5 inch bike (the wheels).

ibb.co/j0mTmx

Please open the link in new tab I am not allowed to post full url :O

There are a lot of fit guide videos on youtube that take you through component by component what makes up an efficient fit. From "the perfect position" there's always some wiggle room for adjustment. If you're not counting watts or in pain, there's no need to be mm perfect.

I used a good fit guide from youtube, but I am unsure about the overall bicycle/frame size. Is it too small for me?

Yes, I'd say it is a bit small for you, 20' might fit. You'll probably be alright though if you don't ride large distances/for extended periods of time.

I may be able to buy a new bike but I am unsure about this> When I made the driving school and I had to set up my seat every time, my instructor said that my legs are really long, but I am short on my arms.
How should I approach this situation?
Buy a stock 29 inch wheels bike with a 20 inch frame, and just put a shorter stem on it? Will that work lol?

Thank you all for your help.

Feel is more important than what you look like on it. If you're comfortable riding long distances then it fits.