Yeah, that looks like considerably better geometry on the drag link
Forgot you were already lifted, I assumed the shock was hanging at full extension in the previous pic.
Yup, you need a grinder with a cutting disc! LOL
I'd even consider removing those u bolts when you get a cutting tool and chopping the threads down a ways, easier out of the truck. Either way, cut them down so you can get a socket on them.
I have no idea how your axle could be off center. Have to start measuring stuff. Unless the spring perches were cut off and moved, maybe the hubs are not the same or??