When my right rear ball jojnt failed the wheel let go and ripped out the axle out of the trans while driving, i embarked on the rebuild process to the damaged parts. i replaced the knuckle, ball joint, bent tierod, axle seal. reused the old wheel hub/bearing and axle. after putting it back together, i heard a clunking sound from the rear when turning, especially at low speeds.
the old symptoms when my ball joint was loose and failing is the tail end would swerve with application of power in a straight line. i no longer have that problem, just a clunking noise while turning.
while taking everything back apart i checked all the torques in the area, everything was good. even the control arms and brake caliper mounts.
i bought a new axle and hub/bearing assembly. im hoping this fixes the issue.
before i rebuild, i noticed the outboard bearing inside the getrag has some side play. i installed the inboard end of the old axle seen in photo and was able to pull it in and out of the trans with a clunking sound by no more than .030" (1/32"). is it acceptable for this bearing to have some side play? hopefully i dont have to split the getrag.

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87 GT Stock 2.8L