That has way to much clearance. It looks like .005" to .006"??? I would think .001" to .0015" at an absolute maximum would be about right. At this point you don't know if it is the connecting rod or the crank shaft that is bad. If you have a calipers you can measure the rod. You would measure perpendicular to the length of the rod and in line with the rod. Those should be the same. If not the rod is bad. Measure the crank and it also should be round. If both are round then one is out of tolerance. Without specs we have no way of knowing which part is bad. It sure would be nice if the manufactures would publish specs for these engines. It would make repair easier.
As it seems it is a pretty new engine it might be worth sending it back to the YS distributor for repair under warranty, if it still has any warranty left.
Ken