Every single freewheel does this, and it’s not an issue.
The freewheel bearings don’t line up exactly with the wheel bearings. This is always the case to some degree, because the interface between freewheel and hub is a non-precision thread.
It might look weird when freewheeling, but once you put use the pedals, freewheel and hub are rotating together, negating this wobble.
Every single freewheel does this, and it’s not an issue.
The freewheel bearings don’t line up exactly with the wheel bearings. This is always the case to some degree, because the interface between freewheel and hub is a non-precision thread.
It might look weird when freewheeling, but once you put use the pedals, freewheel and hub are rotating together, negating this wobble.