How to stop water running down shower tube and under the bath
Thank you for the pictures, that was very helpful. While I wouldn't want to restrict the hose retraction, I don't think there's any other option than to do so. Your situation is worse than I expected &amp; you are stuck with a very poorly planned installation.

But, I think you could go any of 3-ways as still keep your tub wash-down capabilities, as pictured below:

1 - Is to minimally re-plumb with a new hose to a proper tub mount, a short connecting hose below the tub &amp; a longer hose above. (below are the best match I found.) Presuming you have access from the other side of the wall or could install an access panel there for future servicing of the tub.

2 - Is to cover &amp; seal the existing tub mount with an escutcheon &amp; grommet, the grommet's slit would seat inside the escutcheon's hole shoulder. The hose could pull out further, but not retract down to the tub. You'll want an escutcheon that's only slightly larger than the tub mount's diameter.

3 - Is to cover &amp; seal the tub mount a little sloppily with a Hinged Flange &amp; O-ring on top. This is the most flexible as you could easily remove the Hinged Flange &amp; the O-ring would slip through the tub mount's port.