>>1188763>quadriceps never even come close to full contractionAside from looking like you're riding a bike you stole, with your knees practically hitting you in the chin with every pedal stroke, you'll develop NO power to speak of because you'll be robbing your quads of the majority of their ability to contract. So far as joint problems go, I have no idea. Also the saddle in your pic isn't properly leveled, the nose needs to come up about 0.5".
Unless you want to toodle around at 5mph like a filthy casual, who has to walk his bike up even a 3% climb, you need to have your saddle adjusted *properly*. Go get it done, or at least go look for YouTube vids on how to do it yourself. But an improperly adjusted saddle, for anyone who rides regularly, will just make riding uncomfortable, inefficient, and potentially injurious.