Oil Pan Gasket Fitment

The pegs are there to hold the gasket onto the pan before installation; you push them through and grab them with some pliers on the lower side and gently wobble them around to make them pop through and hold. If you do that, the gasket should be OK. It almost looks like the end gasket did not draw down all the way.... did you follow the trim instructions at the rear ends of the cork side gaskets?