HS828 transmission mount

I have an HS828 WA/A SZAK 2026493. I gathered the parts to replace both belts. As I’m taking things apart I noticed that the auger bearing was shot so that got replaced as well. I mounted the drive belt and before doing anything else I happened to grab the drive pulley and gave it a wiggle. To my surprise there was a lot of slop. My first thought was there might have been an internal bearing in the transmission that might need replacement. I started looking in the factory shop manual and compared what I was seeing on my machine. As I wiggled the pulley around I noticed that it was really the transmission rocking on the transmission mounting plate. There are two bolts detailed on page 14-2 of the service manual that show this assembly and as I found out later even more detailed on page 14-11, paragraph 1. I attempted to tighten these bolts/nuts but found them already tight. So now I’m scratching my head as to why the transmission is not firm attached to the mounting plate.
Near as I can figure out is that the two are NOT supposed to be firmly attached. In the Hydrostatic Transmission Installation, page 14-11, para 1 shows a collar, pc 2, mounted in between two plain washers, pc 4, with a wave washer. This configuration does not allow the bolt/nut to tight on the mounting bracket.

So here’s my question, am I correct to assume that the transmission is not supposed to be firmly bolted to the transmission mounting plate?

Also, I wanted to post the two pictures of the original belts I replaced. I was shocked at the condition of the drive belt and had to wonder how it was even working. I’m sure you can tell which on is the drive belt.