I think your elbow could be locked or unlocked in either position. To demonstrate, hold your arm straight out to the side, without holding a bow, so that your bow arm and your shoulders are in a straight line. You could lock or unlock your elbow with your arm in this position. Now move your arm several degrees toward the front of your body, without changing anything else, which is the position you are in in your photo. You could also lock or unlock your elbow in this position.
Your objective is to get your bow arm as far to the side as possible and still be able to draw the bow. When you draw the arrow, it will be closer to your body than it is in your current position. You may not be able to achieve perfect alignment without also making some changes on the string side, but you will be better aligned than you are now.
To get into this position, I like to start from a slightly open stance and then rotate my torso until my shoulders are pointed at the target. I'm conscious when I'm drawing the bow of keeping the arrow close to my body. If I can see that I'm going to be off target to the left because of that, I rotate my body more as I draw the bow rather than move my bow arm, so that I don't have to make any further windage adjustments when I'm at full draw.
Starting from an open stance is optional. I do it because I feel like my body is more stabile than it is if I'm in a perpendicular stance.