Bike Fit for Gravel Racing

According to my Elite Bike Fit app, my shoulder angle is off and my torso angle is too high (sitting too upright). Both I think are indicating my cockpit is too short. Also just looking at the picture, I look too upright considering I’m interested in being competitive in 50 to 100 mile gravel races. If I place my hands ON the brake hoods, my fit numbers are a little better but I’m wondering if this frame is simply too small. If I could get a 2 cm longer handlebar/stem setup, would this be enough?

Shoot another picture with your forearms dropped to horizontal. In most cases you would not be riding in the position that you shot when trying to go fast.

Forearms are not quite horizontal but at least a bit lower. And hands on the brake hoods.

Are you saying that you can’t lower your forearms to horizontal (and ride that way)? Or just shot the picture with less bend.
It does look like there is a possibility that you could be longer, but try for the position with horizontal forearms. And train it!