I won't get into how this mess was created, but it is what it is and I have to fix it myself. The issue is with the tile lip cover that is exposed pass the drywall. The screws are going through this lip into the studs, which I know is not good, but the tub is completely installed and mortared onto the floor, so I have no choice but to cover it up.....somehow. I was hoping to get some great suggestions from you fine people who know way more about this stuff than I. I can tell you that I'm not going to tile anything and was going to paint and cover the lip up. Above the tub is an angled part of the wall so I cannot just buy a tub surround and have it fit and look good. I've thought about using plastic boards and routing a groove to fit over the lip. I've included a couple of pictures to show the existing condition. Thank you all in advance for the feedback.