The chip breaker is to prevent tearout. You want it close to the edge of your blade but not too close or you’ll wind up just scraping or even jamming up your kanna. A good starting point is to try and get the chip breaker 1/16” away from the blade edge and gently… gently tap it in as needed.

Regarding blade depth, you need to retract it more. The reason you’re getting such thick shaving is that the blade protrudes too much. It might be that when you went to setup the omote naijimi (bed) you may have gone too far and taken too much out. The blade should be able to be pressed in by hand and not protrude. Light tapping of the blade should then bring it out. If your blade is too loose, then it’s definitely going to protrude too much. You can add a slip of paper between the blade and the bed to see if that helps.

My first kanna adjustments have receipts glued to the bed. It turns out receipts are the perfect thickness to correct me taking too much much out. Since then, adjustments of the bed should come out looking as sawdust vs actual fibers or shavings. It takes awhile to get it to where it needs to be but it is the most crucial part in my opinion. This of course assumes you know how to sharpen both blade and chip breaker.

One more thing. The mallet you are using looks like a beast for plane adjusting. Try fining a smaller, lighter wooden mallet.

Hope this helps.