It's not a bad sign.
Ideally, while running at a good cruise speed on plane… you want the anti ventilation plate (sometimes wrongly referred to as the cavitation plate) to be slightly above the water level leaving your running surface of your hull.
It's hard to make a accurate definitive assessment without me seeing and running the boat, but from what I can see in the pics,
it appears, in my limited opinion only, that the engine needs to be raised just a little bit….as I can see the leading edge ( the part closest to your boat transom) of the anti ventilation plate under the water…which is causing the spray.
Make real sure to always keep an eye on your water pressure gauge whenever you raise the engine.
Feel free to email me if you need further explanation.
TAMU Wildlife and Fisheries Sciences
Boat racing is like a beautiful woman.......expensive, high maintenance, but well worth the fun!