What looks like the end of the turbo to you looks like every 603 with functioning EGR to me. If the oil seal is worn, there'll be a lot of oil on the compressor wheel. Post a picture looking into the compressor inlet with the hose from the air cleaner removed. To confirm, clean the compressor wheel and redirect the valve cover breather hose (I think someone else suggested this) to see if the oil accumulation returns in short order. If not, the turbo doesn't have a compressor side seal problem worth addressing, IMO.

There's always radial play in the turbo shaft. There has to be since it doesn't have roller bearings. You don't want perceptible axial shaft play.

Sixto
MB-less