This type of damage is part of the normal life cycle of two piece bats. It can happen in both metal bats and composite bats. It usually starts as a flex. The flex is a good thing and a sign the bat is starting to break in. Next a slight wiggle between the barrel and the handle will be seen but not felt. After the bat starts to wiggle it may feel fine for now but it will get worse until you can feel the wiggle. After that the bat breaks in two.
A wiggle can normally be seen but not felt. It can be seen by holding the grip and the barrel, and then trying to bend the bat in half. The slight movement is considered a wiggle. The bat can stay like this for a while but it will get worse. A wobble can be seen and can be felt. It can be felt by holding the handle and shaking it with a back and forth motion. You will feel the bat transition from start to stop. You can see the wobble by doing the same thing. You can also see the wobble if the bat is placed on a table and the bat is not straight.
Warning!! A bat with a severe wobble is dangerous for other players. The wobble means the connector is broken and eventually the bat will break in two. Hopefully, it doesn't end up on the field or hurting an infielder. I have seen fixed bats but most umpires will remove bats with wobbles or bats that have been "fixed".
