I've used that version of distant misfires: https://mods.factorio.com/mod/distant-misfires-2_1-fork
However, since it isn't compatible with bullet traces, I tried this mod. (Without disabling DM!)

This mod got higher priority and overrode most properties.
Except for the bullet spawn offset.
Somehow, these two offsets added together, causing all turrets (and the player) to shoot from above their head.

After disabling DM offset has returned to the expected location, but I'd prefer explicit incompatibility (since mods are mostly doing the same) or to let this mode override these offsets too.