What did they do?

[1969k10stepside]

Want to make $10 back,you dont need them tow hooks

The correct set up is what is in the bed except that 4spd tranny is from a 2wd,not a 4wd.You could use that if you had a divorced transfer case and then use a driveshaft to connect the tranny to the t-case.But,that 4spd as it is wont work with that t-case.I dont see the adapter for the 205 either and the one from the 203 wont work.If the truck has the original cab and it is a original 4wd it has a high hump floor which means the tranny hump bolts in.
I dont know why the transfer case is that low unless the cab has been swapped with a low hump cab and it had to be lowered to clear the floor.As for the 2 holes on the passenger side.Those are for a torque mount on the 205 but a 203 should line up with the torque bracket if it was there and the transfer case was where it needed to be.On the fugly years (73-87) they had rods going from the holes to the bellhousing area and no torque bracket.If you want to go back to 4spd,you will need a 4wd version 4spd,the adapter unless its there and not pictured,etc.If you want to convert to auto I still recommend swapping in a 205 which means swapping adapters and transfer cases,adding the torque mount and putting the crossmember back together and where it should be..I do see the correct shifter for the np205 in the bed though so thats one less thing to buy...
And the transfer cases vary from auto to manual,the spline count is different.Either way,if you use a np205 which is what is in the bed,you have to get a different adapter as a 203 adapter is different.I believe the crossmember for the t-case is right if the rest was bolted on.I doubt he grabbed the t-case crossmember and used it to support the adapter for the t-case since the np205 equipped k10-20 series didnt have any stock skidplate/crossmembers.One may have been added though...
205 Input Trans
10 spline male SM465 4 speed
27 spline male TH350 Auto
32 spline female, (short) TH400