This is progress. The shock is protected from over compression. How long is that plastic cylinder above the cup? That is your bump stop extension. The next question to answer is if it is long enough to keep the tires from mashing into the steel fenders when the axle is at full flex. Like this...
View attachment 48942
View attachment 48943
Too much extension is better than not enough extension. Not enough extension is as good as no extension.
The goal is to have just enough extension to keep parts from crashing into other parts, but not too much as to unnecessarily limit the suspension's up travel.
If you were to remove that plastic cylinder, you would return the bump stop back to its factory configuration. What you see is what you get.
The extension can be added in two places. Above the cup, like yours. Or to the axle pad, like mine. The important part is to reduce that open space between the cup and the pad.