I mean... it doesn't LOOK wrong to me. But it's hard to tell anything from a single picture. My young sister used to hop in the shower with her dad when she was really young (like 2 ish) before she knew any better. Once she knew more about the fact that boys and girls have different parts, well, yeah that's when it got more awkward and didn't happen anymore lol.
I had a photo somewhat similar with my dad when I was around 3. We were in a hot tub though, and I had my shirt off, but I think I was holding on to his back.