From your picture, it can clearly be seen that the crane plunger has gouged a big divot into the crane's recess area where it makes positive contact to hold it tight. With the metal no longer there, the crane is not held tight and can move.
Most likely because of the 'airweight' metal design. Doesn't appear that strong unless they forgot to treat the crane. Send the gun back, because S&W will have to replace it.
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