Re: Photo of D&RG #77 question

No, it did not. It is very typical for steam locomotives used as stationary boilers to have a taller stack installed. The taller stack helps improve draft through the boiler; very important since the steam is now being used elsewhere instead of being exhausted out the stack. (It is the steam exhausting the cylinders through a blastpipe that provides a draft through the boiler; a ring-shaped, preferrated steam pipe called a blower was also installed to induce a draft when the locomotive was standing still.)
Portable steam engines had a tall stack that could be folded down for transit. In railroad use, such a tall stack would get knocked down went it encountered a truss bridge or tunnel. This actually happened to an early locomotive equipped with a too-high stack.