Mine is the same way. I have found no way to eleminate the "up-slop", so I don't worry much about it. The wind forces the wheels into the wells in flight so you don't see them hanging down.
I also am using the prescribed servo arm and that is not the problem. As long as the arm locks the gear then it is doing it's job. Just looks like sloppy design of the gear.
I haven't heard anyone else address this problem so it must not be present in all of the units.
I would like to hear some more input on this.

Bill