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Mine both have at least that amount as does a 12 bolt chevy of mine(a 8.8 kissin cousin)
the 12 slop is from the spider gear cross shaft/worn spider gear spacers and I'd be shocked if that wasn't the case with the 8.8's
My first sloppy 8.8 went about 80,000 additional miles before the tranny exploded-rear end still ok
My newer 8.8 slop-O-matic also has a yoke issue-If this summer is busy I plan on gettin it rebuilt as I love the new truck
I have tightend up a 12 bolt with a new cross shaft-made a big differance-easy to do
about 1/4" is what you'd expect, brand new. 1/2" is normal, a little bit worn in, or maybe just put together a little loose. probably anything over about 3/4" is when you should start worrying.