A little bit of side-side is normal. It's any in-out that's unacceptable.

The bearings are fine with a little side-side play. They need some play for the oil to surround the shaft. Once oil pressure is up, there will be no play. With the filter u-tube off, run the engine for a minute and then shut it off. Once the turbo stops spinning, feel it's play. I'd bet you there will be almost no side-side play.

It's excessive when the compressor oil seal leaks or the wheel contacts the housing.