That is the steering wheel/rudder centering adjustment. If you unbolt the top of that housing, the cable housing should have grooves in it to make minor adjustments forwards or backwards, but yes all the bolts should be tight and the whole unit should have no movement. Make note of the position of the old cable and re-install the new one the same. Use "NyLock" nuts or Locktite to stop the nuts and bolts from backing off if you need to.
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