Start with the suspension balljoints (#15 on drawing).
Symptoms match.

1) Jack up front of car, place jackstand under control arm, just in from balljoint, drop weight of car onto stand.
2) Grasp tire at 12 and 6oclock, and attempt to rock inwards and outwards. Play indicates bad suspension balljoint.
3) Grasp tire at 9 and 3 oclock, and attempt to rock inwards and outwards. Play indicates warn component in steering.
Suspect Idler Arm bushings (#5 on drawing) as a common wear component in steering.

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1986 300E 5-Speed 240k mi.