My bet: Snap ring not seated in the axle groove during last service. And or axle groove has rounded.
I've concerns with the look here. Picture lighting and resolution, makes a very difficult call. Regardless it will need clean up. Proper snap ring gap keeps seal seated properly. To wide a gap, and seal can be compromised.
The seal surface on outer CV between it and knuckle seals, should be silver. I see dark color on axle, and rust on seal area. Where axle penetrates knuckle, we should see brass bushing. The color is wrong, which could be bad photo lighting and or dirt. But we should see grooves of bushing, again bad lighting.
The color of axle should be silver where needle bearing rides. This one after cleaning gave clues as to health of needle bearing.
New brass bushing & axle needle bearing. (Knuckle seal not yet installed.)
New knuckle seal and all greased up ready to install.
I've once, in well over a 100 wheel bearing services, found the E (2.2mm factory installed size) snap, will achieve proper gap of less than 0.20mm. Even when I replace brass bushing, wheel bearings, hub flange and FDS (all OEM), I do not use the factory E size. I use a lot of 2.4mm snap rings and never every anything less than a 2.2mm. But if brass bushing missing, 2.8mm snap will not close the gap to spec. If brass very worn down, a 2.8mm may be needed
At minimum you'll need to clean brass bushing and needle bearing and reseal knuckle,. Likely need new axle needle bearing & brass bushing and new seal.
It's also important to not spread the snap more than need during install. Or it will stretch and will fit loosely (not tightly clamp around axle). It's just as important to have a good groove for snap to fit in on the axle. The groove needs a nice sharp 90 degree (squared angle).