N/S front is the correct 'as left the factory' position, but as you can see when steps are fitted the rubber has to be trimmed, not very well in your case.
The flap will work better if u move it out a bit, using the two centre holes of the bracket although the rubber will still have to be trimmed to clear the step but not as much.
When I fitted replacement front flaps I installed them inboard as your first pic shows, but also fitted the plastic flaps designed to fit to the leading edge of the steps.
What's a mud flap ? Well what they do for me is on the very rare accaions that I have been unable to avoid that brown stuff in the road is help keep my car clean and therefore I don't have to wash it again.
What's a mud flap ? Well what they do for me is on the very rare accaions that I have been unable to avoid that brown stuff in the road is help keep my car clean and therefore I don't have to wash it again.