Worn out yolk?

I install my bushings lined up with the oil drainback groove, but honestly, I also really don't think it matters; I just do it cuz that's the way I was taught it.
I have pressed hundreds upon hundreds of those out, back in the 70s and 80s, and I found many of them installed in no particular place, and still looking good.
I sure wouldn't press a brand new bushing out for orientation.

As to the ball-bearing still on the shaft; it should have no radial play in it.Nor play of any kind.
wash it out, right where it is. Then grab the outter race, at just one point/any point, and push/pull it in the fore and aft direction. There should be little to no movement.
Next spin it up a lil, 2 or 3k is lots enough. and it should remain pretty quiet, even dry.
Next; put some pressure on the outter ring, all around and rotate it back and forth, it should feel super smooth.The inner ring should not rotate with the balls, and should be a slip-fit tight on the shaft.
Finally, oil it up.
This bearing together with the rear bushing, stabilizes that output shaft, and everything mounted to it.
I would not be overly concerned with clearance between the bushing and the yoke. Once that shaft is spinning it is gonna want to self-center in the bushing, and I have seen those bushings come out like new, on beat tochit cores.
But play between the splines, yeah you don't want too much going on there. I Lube mine up with that black Molybdenum grease. It stays on there a long time.And so also it will stick to your fingers and clothes.