Do I have this facing the right way? Seems like it will stick out as far as the butyl strip for the windshield.

Any comments?

Damn if I can remember. I only know that I installed it backwards then complained it was poorly made. A year later I flipped it and discovered how wrong I'd been and what a great seal 914rubber had produced. It's easy to install/remove that seal with the windshield in place.

Looks to me like you have the rubber installed in the wrong position. Move it one groove to the right in the picture

If I remember that is correct and I installed mine after the windshield was installed. That front lip of the seal will face up leaning the windshield. In addition, if there is moist from inner side of the windshield, it will just slide towards the top of dash instead of going underneath that can cause rust.
For sure someone from 914rubber will give the exact answer.

@Mikey914

Mark, can you advise?

The direction on the seal is correct. You will need the corner pillar pieces installed to put it in properly. You will need to notch the ends to accommodate the trim part. I cut the piece about 1/8 longer than needed, put both ends in and overcenter it. It will push down and stay in place.
-Mark