Either you have re-invented physics or your 1N5408 is faulty.
The LM317 does precisely nothing and can be removed without any change to output voltage. Reason: To regulate, the LM317 needs at least 1.5V more on it's input pin (and preferably more) than it's output pin. The diode limits the maximum possible to about 0.7V difference so the LM317 will not operate, all the current flows through the diode. Connecting the output and ADJ pins will not work. It's like connecting your car road wheel to it's steering wheel and expecting to drive in a straight line.
Try this: Remove the LM317, keep the diode and the capacitor(C2) after it. Also wire a 1K resistor across the capacitor to keep a small trickle current flowing through the diode, it will help to stabilize the voltage.
Brian.