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
Steering knuckle on 2005 Toyota Camry
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.