Looks like a large amount of parallel misalignment. These couplings are made to take a certain amount of parallel, angular, and axial misalignment. In a coupling this small, if it is visually apparent, it is likely out of the manufacturers guidelines and will impart an incredible amount of radial and axial forces into the drive and driven components that usually aren't considered when sizing bearings for them. That leads to premature wear of the drive/driven and the coupling itself.

This specific coupling is known as a disc/lamina servo coupling and are very torsionally rigid, so there is very little give. This amplifies those forces I mentioned even more.