So I ended up finding out that 50mm of play was the threshold, I was definitely not getting that much. Either way glad it's fixed.
I also ended up replacing the steering tie rods (with genuine Toyota replacements of course) along with TGP rack boots, and swapping in my Prothane bushes while I was at it. Steering is so much better!
Took it over the pits again and they picked up that the handbrake was out of balance on their dyno. Took it to a shop with their own dyno and they were able to prove it was the passenger side rear caliper was weak, and since rego inspection only picks up at a certain point of pressure, Eg. at 100% pedal, brakes were fairly even, but at 50% the passenger side was barely working. Handbrake imbalance was even worse, even with new handbrake cables.
I could have rebuilt the brakes myself, but instead opted for the shop to fix it for me since I didn't want to fail pits yet again, and I was short for time to meet deadline (Toyota Nationals). Also they said my HKS exhaust was too loud.
Dropped off my old muffler and picked up the car the following week with a bill that definitely hurt my wallet. Passed rego and immediately took it to a trusted steering and suspension shop for an alignment that would suit khana.
Ended up getting over 1.5 neg camber on rears, almost half neg on the fronts but good caster and a fairly neutral toe. I installed my HKS exhaust and whiteline front sway on stiffest setting, but was getting too much understeer on the khana. On the streets it isn't noticeable due to the speed difference.
Car is running the best it has but has since developed either a idler pulley or alternator bearing squeal on cold start indicating it's on its way out, so will sort that soon.
Sadly the car is up for sale, but at $6,500 negotiable due to the extra work I've put into it; the car is much more of a complete package with very little work needing to be done. I've already had some interest so pending on how goes, may advertise further. Also flexible in price depending on whether buyer wants the spare engine with rebuild parts.
I'll just leave this here. Car is so fun to drive and even with the lazy auto and factory boost, clean times still netted me best AW11 in the khana at the Nats (if only they had a trophy for that!)