Dust shoe not touching material/board

Hi, we’ve finally fired our ooznest up in anger and what a piece of kit :)

One question though: We’re mounting the drill bit up to the highlited line, in to the spindle and it’s sticking down below the dust shoe and brush. As we’re cutting the spoil board we have dust escaping.

We’ve lowered the shoe down as low as it will go without falling off the router but there is still a gap! Are we able to insert the drill bit higher into the chuck, past the marked line on the bit, or do we need to buy shorted drill bit? Any advice or help greatly appreciated. Please see the attached photo…

Thanks for the help. PS we’re so looking forward what we can do with this equipment!