Lip is normal so you can just grind it down. The radial depth from pad manufacturer to pad manufacturer is different for the D41. Sometimes it can be D42, D39, D40.5, etc.
I can see that the pads are starting to glaze ever so slightly as well. You are overheating the pads which also may mean you could be engaging ABS and heating up the brakes more than they should. XP10 on the AP Sprint Kit is pretty solid especially for your setup.
The brakes aren't bedded in properly as well. If they were, then the brakes will be pretty silent. Also note that Carbotechs do make insane banshee squeals and sometimes feel like they are grinding. It's somewhat of a CT trademark too. Try cleaning up the pads a bit and re-bed the brakes. Stay off of ABS.