Hi!
Everything looks OK.
Even if you had made the simple error of failing to install the dip tube you should get gas escaping when you open the party tap.
3/16 line has a resistance of 3psi/ft, so your serving pressure should be roughly 3 x line length. You've got it set at about 25psi, meaning about 8 foot of beer line. If you've got less than 8 foot of beer line burp the keg and dial down the pressure.