I've been having clutch issues where I'm unable to disengage the clutch and a loud squealing with the clutch pedal in.
I replaced both the master and slave which didn't solve it so I ordered an Exedy OEM clutch,
but it just occurred to me that this slave might not be in the correct position causing it not to disengage fully.

If this is not the correct position, can someone tell me how to fix it?

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Yeah, that does not look right. The slave rod should be compressed when the clutch is not being pressed. That looks like it could be something to do with the clutch fork.

This is what it should look like:

 

Yikes.... ok, Do you know how it might have ended up like this? How do I fix it?

 

You could try pushing the slave rod in with your hand and moving the clutch fork end to see if you can feel anything.

 

My guess is spirited driving. Do you ever ****** gears? Shifting into 2nd at road speed might also do it. Fixing it might require replacing the slave cylinder. There might also be corresponding clutch damage which could be evident after the slave cylinder is replaced.

 

I do drive quite spiritedly, but that's a brand new slave you're looking at. I'm pretty sure it's been at that angle since I bought the car. I'm currently doing a clutch rebuild, so hopefully it will position itself properly then.

 

Brand new, eh? Best wishes with the rebuild.