Is the SS immersion chiller bends at the top are bound and keep it from going into the keg?
stainless is a little hard to bend to straighten the hose connector bends on that chiller.
With copper you just cut the rise just below the bend of the lower coils hose end, then pull the coils apart some to get the right height for the upper coils end bend to clear the top of the keggle. You can then use compression fittings and the same size tubing, or use the next size up tubing to extended the existing tubing of the lower coil to the proper height to clear the keg, then solder the bend end back in place.
You may be able to get someone to tig weld an extension tubing riser on the lower coils side like done above. Compression fittings are probably more money then the cost to weld an extension on.