Don't take much stock in what your divots are doing. Where they occur matter more than what they look like, making sure they happen after the ball.
Also, what iron are you using in that set up?
I would say you have the ball too far back and standing too close, if that is were your feet are at when you set up to the ball.
No, I don't usually stand that close. That's just me standing over it to take the photo. It happens pretty much every time I hit an iron off the tee.