The barrel is hard pinned to the slide, if the barrel retaining pin is not sheared, it doesn't matter much how loose the slide is on the frame, as the sights and barrel are one solid assembly.
Mine is sloppy loose on the frame, and was my bullseye match gun for years. It was good for 1.5" groups at 25 yards, single hand standing.
Clean the barrel, find some Norma Match ammo, and shoot it again, after you make sure the barrel is tight in the slide.
Joe