You shouldn’t use the heat shield at all for high temperature direct grilling. And yes, you should correct the orientation of your inner basket so the shield sits properly for when you do low and slow cooks.
Video 101, your phone should be sideways when shooting videos not vertical. We all have to learn. That Grill Expert charcoal isn't bad and about the cheapest. I just noticed it tends to be smaller pieces so more will fall through the grate.
It's that cheap ass charcoal is why your fire isn't hot. All charcoal isn't created equal. Your insert basket is backwards too, that's why your heat shield is backwards.