Excessive wobble from AMT10 Encoder

After mounting stock AMT102 on KEDA 63-64 190KV Brushless Outrunner 10S 2000W from Hobbyking I have noticed that the encoder is vibrating a lot, and almost feels like that the encoder wheel is mounted off-center.
Have anyone experienced anything like this?

EDIT: The motor axis seems to have a tilt: I’m measuring the runout of 0.018 mm not sure if this is what causing it.
The encoder spec https://www.cui.com/product/resource/amt10.pdf says +/- 0.3 mm axial play is OK.
Still, something feels off.

Please double check you did this step properly:

Yes, I have done it multiple times, it seems something is funny with encoder: I will try on another motor just to see if I can reproduce.

For those still looking for a solution: I solved this problem by limiting the current, because the unloaded motor will always overshoot the target position at high currents, thus resulting in a vibration from trying to correct the overshoot. This problem is more dramatic at higher cpr of the encoder.