Yikes! Is that a previous demon, or did that just pop up after this first drive?
Either way, yes your steering linkage looks to have too much angle. Multiple problems that causes, especially with a '76/'77 "inverted-Y" linkage.
Did you determine what height you're lifted too, based on that stock measurement given previously?
And if you do put on some drops, do NOT do only one. If you keep the Inverted-Y setup, you must use both a dropped pitman arm and a dropped trackbar bracket. With stock linkages, you always use both.
If converting to the more rigid Inverted-T style linkage of the earlier models, you would only use a lesser dropped pitman arm, but no trackbar bracket due to the change of geometry.
The Inverted-Y setup was superior in some ways, but it's definitely less tolerant of lifts and larger tires.
Do not adjust other things until you get the levels back down. While lifted, you will also be dealing with your steering box and axle being off-center until you install the drops.
So fret not... Nothing to be frustrated about at this state. 'Cause you weren't finished with the steering set-up yet anyway!
;D
Paul