You're right, your skid has been dropped to the lower holes. You can see the sled used to be in the stock position by the evidence of where the washers left their marks in the upper holes. Why your skid was dropped remains a mystery. I dropped mine when I put the Elevate kit on my Alpha. I have no experience with the KMod so, I really can't say how that relates.
Lowering the front of the skid takes weight off the skis because it puts more skid into the snow. Lowering the rear to match maintains the stock skid attitude but gives you more skid/track in the snow. It does raise your center of gravity because the sled sits higher in the snow and can become tippy for some.
Some love it, some hate it. Some just lower the front skid bolts, some just lower the rear skid bolts. You really have to drive the sled to see what works best for you and your particular riding style.
Then there's the question of what should you do with your limiter straps if you change your skid mount holes. That's just another rabbit hole to jump into.
