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Very nice truck, X2 yes that is ok, that is your slip yoke. When your rear suspension flexes from compression and extension, the drive shaft has to have the ability to move or slip. You probably have another 2" to 4" in there.
I can confirm mine sticks out just as much. The spline part is actually quite long, there is nothing to worry here, you still have plenty of engagement.
if you are nervous put some tape around the exposed splines and then take the drive shaft out, careful you just removed the solid item between the trans and rearend. And measure what you have left showing.