a - the dumper on one of the axes is tuned to be stronger than on another (it is OK but not for now).
So, to begin with, temporarily loosen the tighter dumper.
....
3 - use VKB calibration tools to re-calibrate the device.
...i reset it just in case.
Did you calibrate the device using VKB calibration tools? Y/N
If Y, please in a few words describe how you did it.
The damper screw is very loose. although i did tighten it after initial setup hoping it might stop the sloppiness of the Y axis.
Did you loosen the tighter damper on Y?
The off-center of the axis on the screen only shows that the device has not been calibrated, or has been calibrated in a wrong way.
The latest series of pictures you posted are about the mapping of your buttons, which is interesting but not relevant to the problem.
Let us focus on the curves (the sinusoid) and calibration.
1 - release the damper so that both dampers feel about the same. NOT like when one of them feels tighter than another.
2 - use VKB utility to calibrate the device.
After that, please show me the picture like the one I am attached to this post, AND 4 pictures showing the curves, like you already did before.
Honestly just feels like one of the springs is a little too long.
If it was it would have been filtered out at the assembling line. The probability of such event is merely theoretical, let us leave it as the last resort.