Please help! What's going on with my needle ??? It feels way too low

Something is def off. It's a brand new embroidery machine (brother se700). I was finishing up a design, and when it was done, I noticed my needle was super low. I tried to put in a new needle, but I'm not sure what I'm doing wrong. As you can see here the needle is quite low and hitting the hoop.

I switched the embroidery part out with the regular sewing one, and something still feels off... Will share a close-up of that in comments, because I can't figure out how to add here. Please help me sort this out.