Some things I have learned dealing with my Kinetico system:
1. The water level is only about 6 inches in bottom of the tank, the purpose is to make the brine solution which cleans the minerals off the beads inside the softener cylindrical tank. It is OK to have the water above the salt, as long as the brine solution is saturated and there is still salt in the water solution. Best to keep the salt above the water level to avoid this though.
2. It is good to clean out the salt tank every year or so, depending on usage. A lot of dirt and contaminants build up in the bottom of the salt tank, you want to get rid of those.
3. A manual regen cycle can't hurt, but you also have to replenish the lines for the new softened water to reach the end at your shower.
4. I seem to have better results with the larger chunk salt than the finer gravel salt. Not sure why this is.
5. My incoming water hardness changes, but I don't bother to change the regen frequency. Basically set this to cover the worst hardness in summer and then don't worry about it doing a regen a little sooner than absolutely required in winter.
6. I assume you have an incoming filter on the water supply, I use a 5 micron filter on mine and no restriction issues.
I think your water level float is set too high, it only needs a few inches for the brine solution. It will be a pain to remove the salt in the tank now, but check your pickup tube and as long as you have a few inches over top of that it should be sufficient.