I offer you no solutions but that loosening could be either that the leather washers have shrunk; or caused by a genuine over sight at the assembly line.
If the cap is flush with the end of the tang, I would say the leather has shrunk. If it is not flush, I would say the pin hole is off in the tang, or the cap.
If it is the leather, maybe some kind of leather conditioner.
By a strange coincidence I have a Camillus M3 trench knife on order. I found it online the other day while looking for something else. I'll check to see how the end cap is affixed when it arrives.
I just got a "new" M3. End cap has some play but more disturbing is the center line on the blade runs crooked towards the point. End result the tip and the center do not line up. :barf:
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