Upper pulley too far from cassette I'm doing a 1x conversion with a Shimano SLX (M7000) groupset on an old road frame.

I just installed the rear derailleur and the pulley is too far away from the cassette. 18mm from the max cog (recommended is 4mm-5mm). However the B screw is all the way out and screwing it in only widens the gap. Not sure what's going in. Maybe the chain is too short? 

Some photos of the setup: https://imgur.com/a/nCCgBWg


RD-M7000 GS Rear Derailleur Medium Cage
CS-M7000 Cassette: - 11 Speed 11-42T
First, take the chain off and shift the derailleur into position and see what happens. If it's still too far away, you can possibly eliminate the short chain (which does look too short) from the equation.

Without the chain, you should be able to see what is causing the derailleur to sit at that position. 

You should be able to find what's preventing the jockey wheel from coming in closer contact with cassette ring by flexing and contracting all the movable parts on the derailleur.

Possibly, the derailleur hanger places it too far out?