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Two things that I see:
1. It doesn't appear to be the correct brake pedal, the master cylinder end shouldn't be bent in at an angle to hook it up to the brake actuator rod. There is very little (if any) upward movement because it is bent the way it is.
2. I can't really see the actuator rod itself all that well due to the mud and grass on it, but that looks like it isn't parallel to the master cylinder chamber, so it can't be pushing in on the inner plunger all that well. I also can't see if the actuator rod is threaded, normally they are so the clevis at the bottom can be adjusted up and/or down.
It also looks like the brake return spring is sprung, the pedal should come up to and hit the footpeg mount with your foot off the pedal. My best guess is that someone "MaGyver'ed" it just to unload it. A properly operating hydraulic brake system only needs maybe 1-1/2" of travel to fully lock up the wheel.
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