Need some gutter install advice

So I've done a considerable amount of research for installing gutters on our house. First time installing gutters House is a single story ranch (50x29'), hip roof, ~20degree slope. The house has aluminum cladding on the fascia while the garage does not. I know downspout locations and we have 16' sections of 5" K style gutter. I'm stuck on an issue with our fascia. Its stepped and not smooth, about 2" by the drip edge and 4" below that. I'm unsure to mount the gutters high or low, since were I would like to be is right where the step is.



Option 1. I can wedge them kinda up under the drip guard but this leaves part of the back side free hanging, which i'm not sure if that is a problem or not. This close to the dripline isn't great for snow tho we do have a roof rake. Looking at neighboring housed they have them pretty close to the drip line like so.



Option 2. Other option is to mount them on the lower 4" section, but I'm not sure if that is too low if there is heavy rain, but it should be better for snow. They will likely go below the fascia a bit if using a proper 1/4" for every 10ft which would look... not great



So looking for advice on what is the best option here or any alternative options I may have overlooked. Thanks very much for any help.