Same minimal play I had probably.
But yes, you have found a completely thrashed, old and tired, worn out, given up the ghost, given good service, wheel bearing.
When you get a new one, you will realize that any play is a bad thing. The bearings themselves have no perceptible play when they are new.
The only In-N-Out movement, you should see when the parts are fully assembled, is sometimes some space between the outer retainer and the outer race of the bearing itself.
But they’re really shouldn’t be any of that either in a perfect world.
No real play in the bearing that you will be able to detect.
And it will be smooth as glass and If you spin it by hand, it will not continue to spin. Instead, it will stop instantly as soon as you release.
Glad you found it. Looks like it’s time to do the other side as well!
And the other good news is, if you didn’t know already, now you will know whether you have a big bearing or a small bearing rear end.