I can't see anything wrong in the photo and the reset chip looks the correct way around.
You shouldn't need any special jumper settings for programming.
The VCCINT pins should be 5V and VCCIO pins 3.3V
(It runs 5V internally and can take 5V inputs, but drives output pins at 3.3V)
This is how it looks for me before pressing run to program it:

- Screenshot 2025-07-05 at 08.09.19.png (206.4 KiB) Viewed 18 times
If I run without power to the chip I also get ''hardware & software settings mismatch" message so maybe there's a lead to be had there, or maybe it just spits out that same message regardless of what goes wrong
Is it a new ATF1508 or a used one? I'm thinking in case a previous programming had some security bit checked, or maybe had jtag-isp disabled because they needed those pins for something else?
Edit, and this is the hardware I am using:

- IMG_4943.jpg (14.47 KiB) Viewed 14 times