16:1 manual steering

The sector shaft is actually moving sideways in the housing (axial movement)? Maybe they forgot to put the needle bearings in the housing when they assembled it. If the movement is rotational, it's something in either the pitman arm or steering linkage.
Yes it moves side to side right above the pitman arm. I looked at what I could see and it "looks" normal. The old box has zero movement in that area.