Remember that any inertial frame is equally valid.
You've been looking at the muons and mountain experiment from the POV of a person standing on the ground (or) on the mountain. In that frame the muon cover a distance equal to the mountain's height and take several times the muons (uncontracted) lifetime to go that distance, but they make it because the person see's their internal clock as running slow by a factor of $\gamma$.
Now imagine that you are riding on one of the muons. In this frame of reference the muons are at rest and the Earth rushed toward you at large speed. Because the muons are at rest relative you they will decay on their un-contracted schedule, which means that there isn't enough time for the Earth to move by a distance equal to the height of the mountain. None-the-less you crash into the ground before many of the muons have decayed because the mountain was length contracted from your point of view.
The point is that both length contraction and time dilation are expressions of the fact that the interval
$$ s^2 = (c \Delta t)^2 - (\Delta x)^2 $$
between events is measured to be the same in all inertial frames of reference (this is a re-statement of the constancy of the speed of light).
That is we can say that
$$ (c \Delta t)^2 - (\Delta x)^2 = (c \Delta t')^2 - (\Delta x')^2 \,$$
where the un-primed frame represents the time and distance measurements of a person standing on the ground and the primed frame those of a person riding a muon.
The un-primed frame see the full height of the mountain, but a dilated time period. The primed frame see the un-dilated (therefore shorter) time period but see the mountain's height as contracted allowing the difference to be the same.