Output shaft movement

[BA658]

175 evinrude ficht, my prop shaft has what I think is too much lateral movement about an 1/8” or better.. to my limited knowledge, there isnt supposed to be ANY movement in the shaft. Was told bottom end was built less than 10 engine hrs ago. Also there is a slight “thumping” sound that almost sounds like a “lifter” tap would sound but in the lower end. Follows RPMs. Could it be a simple as the thrust washer?