Yeah, the engines had me scratching my head as well. Like you said, the low res picture isn't helping things but I believe that photo is with the engine thrust reversers activated. Considering the flaps appear to be full down this to me feels like the best explanation. Of course they could have just muffed it, too. Haha.
I really hope they get this right. MSFS really needs some good quality classic iron to fly. 707, 727, and 737-100/200 are important aircraft in aviation history and need to be well represented.