I have a Taurus PT1911 and slide has a lot more then 1/64" of side to side movement.
That beeping said , I didn't have single malfunction in almost 3k rounds ( mostly SWC reloads ). As far as accuracy goes , it's still more accurate then me , but if I try I can put 5 rounds in black at 50' on NRA target.
Don't think there's anything wrong with your gun. I'd try to adjust a sights and practice a bit more , before selling the gun.