This could be moved to the bike fitting thread: The Bike Fitting Mega-Thread
1: Yes, you’re bike fit is off. You need to lower and/or lengthen your reach to the handlebars. It has to do with your hip angle.
2: Not really relevant. Power output has to do with hip angle, not type of bike.
3: Your glutes are not activated optimally when your hip angle is too open.
Compare front squat (open hip angle) with back squat (optimally closed hip angle). You can lift much more when back squatting since you’re using more of your glute strength.