There are several reasons a sprocket can be wobbly like that. I'd certainly suspect the machine shop, but I have had to mess with plenty of Cat sprockets because of bearing alignment, and microscopic wobble on the mounts. And these were factory setups that had been on the bike for over 40 years.
There are several posts here on sprocket alignment that I used a few years ago to guide me. Throwing it out there- might be the machine shop mistake too.