Yep, that's just the way she works. No worries.
The beauty of it is when it's loaded with your weight, the joint is being forced together. Believe me, it's not going anywhere. And that "relatively loose" fitting makes it easy to assemble and disassemble.
Looks like you have it!
(a few have gone so far as to drill through and put in a pin at the joint, but I find it completely unnecessary. )
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