The ground wire is short because someone didn't allow for a proper length wire cut it thinking it will be easier to ge the wire and the outlet back into the box. As someone who rewired house for 11 years, that box is an old work box, that was obviously added after the house was built, and can be easily removed if necessary, by bending the 4 thin metal tabs out ....perpendicular to the wall. The box will come right out. The " hold its" ....the thin metal tabs.....might fall back into the wall. They are readily available at big box stores, elec. supply houses. Inexpensive. Looks like..?..# 12-2 wire or BX cable. There is enough wire there to install an outlet.