after taking a closer look and dissembling everything and reassembling it, I have determined that the spacers are worn out and are allowing the hub and thus the whole wheel to slide left to right on the axle.
I am not visualizing how the spacers would allow wheel to move left/right? If everything is tightened, with bearings seated correctly with center spacer spacer preloading bearings. The only movement would be coming from the bearings. Is it possible your bike was ridden with lower pinch bolts loose,and axle is moving in fork leg?