The longer type replaced the shorter type a few months ago to give larger room for error. The longer one is mounted so that it's flush with the shaft, and the shorter usually sits about 1-2mm in on the shaft. The important bit is that it sits as close to the middle of the filament as possible like Labern mentioned.
If it's coming loose you're not tightening the set screw enough. It's very easy to destroy the head of these little screws with an allen key so I would recommend using a torx screwdriver instead if you have one.
It's also a very good idea to put some loctite/threadlock on the screw to make sure it stays in place. Another important thing is to make sure that the set screw hits in the middle of the flat of the shaft. Tighten the screw just a tiny little bit, then wiggle the sleeve so that it re-centers, tighten a bit again and wiggle and then finally torque it down hard.
The pressure is set to the minimum in your feeder which should be ok I think. You might want to try tightening it slightly, but probably not.
Is your nozzle blocked? have you tried cleaning it using the "Atomic method"?
It doesn't matter which way around the hobbled wheel sits but it is more convenient to be able to access the screw. You want the filament sitting in the middle of the knurling.
If it is grinding then the tension is to tight so try loosening it off a bit.
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