OK, I just (finally) went out to the garage to gaze longingly at my AK 550. OH, and I also looked closely at the knob.
It does wiggle a little. With the bike turned on or turned off. When turned on it of course latches into the position selected but even then I can wiggle it around. I'm going out on a limb here and saying this is normal. The wiggle I am feeling even with the knob locked onto a position kinda has to be there to provide some slack to avoid overly straining the mechanics. It's like the slack you feel in the throttle. There is a tolerance for the throttle that is based on how tight the cables are (if not throttle by wire like my 2022 model is not throttle by wire). And every electrical rotational switch I know of has some wiggle to it to prevent it from being so tight it's hard to turn or breaks the electronic contacts inside.
And on that other thing. The clunk. I think I did feel it once or twice but very very slight. It happened about the time during slowing down when I would expect the clutch to release. I don't recall that my Burgman actually had a clunk when the clutch released on that scooter but there was a definite sudden "let go" of the drive train when that happened. Same here, the few times I did feel a clunk was when I was letting engine braking slow me down then used the brake before the clutch released. At the same time I also felt the clutch drag release since I really wasn't using the brakes very much but very lightly. Both times I was slowing just enough to allow the traffic in front of me to start moving again since the light had turned green and they were taking their time getting going.
Ever wonder why 4 wheeled cages seem to take so long to get moving when the light turns green. I only notice that when I'm riding the AK and not so much when I'm in my cage.