I just ran in to this same problem with the same conclusion over the weekend. I just recapped a Mac Classic analog board, I had not powered it on before recapping, and had the "wobblyness" problem as well, also more apparent at the top of the screen.
I found schematics and started checking voltages. The 5v and 12v rails were low. The 5v is the only one monitored via optocoupler feedback, I'd expect it to be nearly exactly 5v, it was 4.6-4.7v. I wasn't expecting this to be related to the monitor problem, but the monitor's voltages would be affected, any variation on 5v would affect the rest. So I checked the resistors and connections around the 5v feedback circuitry, everything looked good. I then decided to try adjusting PP1 with only an old hard drive connected to provide a load (mb disconnected) and the voltage jumped around from 4.5 to 5.1v randomly - likely bad or "scratchy" pot. I removed it, check it, sure enough, the resistance jumped all over - it's a 220 ohm potentiometer, resistance jumped to several k then several M as it was adjusted. Cleaning didn't work in my case. I substituted another one of similar value and was then able to set 5v correctly and the wobbly problem went away.
I would replace that potentiometer and not rely on cleaning it alone, you'll probably have trouble again.
Mouser and Digikey have almost the exact replacement as part number Amphenol Piher PT10LV10-221A2020-S. This appears to be almost the same one, but the leads are formed differently. According to the datasheet, the "V05" version seems to be the exact replacement. The leads on this one can probably be bent and may need to be extended. I'll be ordering a couple soon to try. Any suitable 220 potentiometer would probably be ok, but it should be one like this that can be adjusted form the bottom as from the top would be difficult and potentially unsafe.
I too am using an SCSI2SD. It's easy to set up and i used
this method to load the OS on the drive, it made it quick and easy to get os 7.5.5 installed - ran in to some trouble with extensions, but that was easily solved.