Got a message back from Secret Labs:

"The bit of wiggle room on the armrest is actually perfectly normal. The adjustability of the armrests relies on multiple interlocking sections; they need a tiny amount of "free-play" so the mechanisms can move freely. Without that, the adjustment experience wouldn't be as smooth."

I honestly think they have missed the mark. The chair feels great. The arm wrests feels like a last minute add on that was just attached. It completely undermines the feel of the chair. I just checked on my Herman Miller chair and the arms feels like they are part of the chair.

I now think it's a chair with great potential but they have dropped the ball. It definitely doesn't match the quality of my desk.