have defective steering knuckle or steering assembly. Dealer service says they have seen this on several Camrys and Avalons. 4-800 to repair. 60 years of owning cars I never had a steering knuckle problem. This is certainly a mfg defect
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2005 Toyota Camry Question: Steering knuckle
Answer #1patrick mannion from Greg Solow's Engine Room, April 07, 2009, 00:16Master
The steering knuckle shouldn't have a problem unless they suffered damage due to impact with a deep pothole or accident damage. On rear wheel drive cars the steering knuckle contained the spindle that the wheel bearing rides on if the bearing was bad for a while it could damage the spindle but your car is front wheel drive. I would want to know what in particular they have seen as a fault and then contact Toyota Customer Service to see what they say. I work on a lot of Toyotas and haven't heard of this problem.