Hi, while I acknowledge that the ME have some issues itself, what you are trying to achieve here is still possible with a few tactical tweaks. My first impression of your formation is it is more suited towards a more direct style of game but it is still possible to create chances with a more possession-oriented approach. I will try to dissect all the problems with different phases of the game and will encourage you to read some of the tactical guides that are pinned in this forum.
Build up phase:
Whenever you are trying to play out from the back, it is always possible that the opponent can block your build up if they push enough men forward to close you down so a lot of the times the defenders or goalkeepers will just hoof the ball forward if they do not have a safe short passing option. Your goal should be try to let the opponents commit enough men forward that they will be exposed defensively at the back by a long pass forward. In your tactic, the central defenders will have less risky passes as their PI hence they will be less likely to try to pass to your forwards with a ground pass. You can improve this by switching one of the central defenders to a ball playing defender if he has the right attributes to do so. From the screenshot that I can see, the opponents is pressing quite aggressively hence you will face problems playing out from the back. I think you should also keep in mind that it is difficult to fine tune the balance between good pressing and how capable the AI can produce a good pass under pressure which can lead to frustrating moments described by your screenshot above. Both of your wingbacks is also on attack duty which actually does not help with playing out from the back when the opponents wingers can easily mark them due to their advanced positioning. This is a problem that Arsenal faces IRL when trying to play out from the back. Bcz their wingbacks is so high up the opponent wingers can easily mark them making them unavailable as a passing option. Instead you should try switching them to a support duty so they can drop deeper and have space to pass. Your two central midfielders up front are b2b and mezzala which will always look to run forward to support the attack so will be less inclined to support the playing out from the back. Try switching the b2b to a central midfielder with support duty as I do not see the need of another player inside the box when you have three strikers. This should improve the situation of playing out from the back as the central midfielder will look to offer a passing option more than a b2b midfielder.
The three strikers, b2b midfielder and the mezzala is playing very close to each other especially when you set them to be narrow in possession. This makes it very easy for the defender to close your players down making any passes through the centre very difficult. Try to give the strikers 'stay wider' PI and remove the 'narrow in possession' instruction. The wingbacks with attack duty will also have issues playing a good cross due to their aggressive mentality hence they will be much closer to the byline and will not have much room to cross before any defenders close them down. As I have said previously switch them to a lower mentality and you should see improvements in the attack. Regarding the long shot issue, I think enough posts have been made about this year ME and I will let you decide what you want to make out of it.
May i know do you have tight marking on their fullbacks set with your wide strikers? This may cause some issues when you try to ask them to close down another player. You mentioned that your central midfielders seem to be reluctant to close down the opposing team. This might be due to the balanced mentality you are on so they will try to protect space rather than close down aggressively. You can switch to a higher team mentality so they will close down more but be aware that this come with a risk of disrupting your defensive structure. Regarding the issue of the fullbacks closing down and fouling the strikers and the central midfielders, I do think it is due to the higher mentality of the fullbacks. As I have said previously, try switching to a lower mentality or set them to close down less and you should see less of this happening. It will still happen a few times but I will account it to the decision of the player rather than a flaw in the AI.
Hope that I have answered all your questions. Personally I have a buildup pattern that involves the gk passing to the fullbacks that is quite successful in playing out from the back. The difference is that I play with wingers and I do believe it is an important component to break through the opponents press. I can share it here if you will like to see how I do it.