RE: What is wrong with my setup?
That is normal. That shows the reasoning why setting 3rd and 4th axis on a sight is more difficult and has to be set to a persons hand torque. There is side pressure applied as you draw your bow which causes the bow to torque. Offset cable slides help reduce the amount of torque, thus bringing your sight path and arrow path into more of a parallel line.
Don't worry about it.... Mine does the same thing.....