Coudl have bad bearings with excessive slop. (just fixed a lawnmower motor with that problem by using old hubmotor beariings, earlier today)
Also, many motors are poorly machined so the covers are not truly centered. This means that whenever you take the covers off a motor, it's recommended to make a good solid mark (punch, etc) on both cover and rotor / housing at some point on the meeting edges, and different on each side of the motor so you can be sure to install them back on the correct side.
If there are wavy washers on the axle shoulders don't forget to put those back in the same spots or the stator can rub on the side covers.
Same for putting the stator back in--make sure it's back in the rotor the same direction it was (left and right not swapped); it shouldn't make a difference but on some motors it does, either because of an offset design or because of poor machining.
If the covers aren't centered but you don't know which way they went on originally, you can try rotating one cover by one screw hole on one side, screwing it dwon, then seeing if it spins by hand without rubbing. If not, take that cover off again and move it over by another screw hole. Repeat until it doesn't rub. If you can only get it to rub *less*, then find the spot it rubs least, and then do the same thing with the other side cover until it does't ru
are the bearings worn? if so replacing them may centralise the axle correctly and enable free movement?
the damage shown looks like it could be the result of very worn bearings..
Am not sure since the side where the stator is has the gears for the bike chain and i dont have the special tools needed in order to remove them.