8 3/4 axle end play question ??

I changed out the the center section today, and when I went to adjust the axle end play,I tapped on the drivers axle with a rubber mallet to seat it, and proceeded to adjust the pass side for adjustment. I checked the end play of the driver side, and the driver side still had about 1/8" of end play in even after I adjusted the pass side axle per factory specs.
So again, I tapped on the driver side axle to make sure the bearing was seated.

Then I fully seated the pass axle bearing, but still had play on the driver side.??

Any idea's? I do have factory adjustable bearings, I made sure the "buttons" were installed in the gear before installing also. The driver side has slight up and down movement, and slight side to side movement.
Maybe the bearing is worn out?? any thoughts?
Thanks
HotRod20