In my experience, adjusting the shock was NOT possible while installed. Where the reservoir tubing exits the shock body, it blocks you from being able to turn the collar enough to grab the next catch point. It was a PITA to get it where I needed it with having to remove and reinstall just to adjust it a little but I haven't needed to adjust it since.
Next time remove the reservoir from the bracket then use a line wrench to loosen the hose at the shock just enough to twist the elbow up and out of the way.
You have to make sure the bolt for the ring is on the outside, yes. That's how we did my buddy's king adjustments on his Tacoma. Multiple times.Still don't believe you'd be able to loosen and tighten the adjustment ring with it still being in proximity to the shock tower.