I do not have an
Air 2 but I do have a wrecked and dismantled
Mavic 2, its motor looks similar to yours.
That section at the bottom of the motor, with the circumferential slits, is a casting? which also serves as the mounting point for the motor. Whilst the metal surrounding the slits can be deformed, as shown in your photo, I doubt that the body of the casting can be deformed by anything other than deliberately applied force with tools etc..
Therefore, given what I see in your photo, I would suspect that either the screws that clamp the motor to the arm have been pulled through the plastic of the arm or the mounting point in the arm has been broken away from the body of the arm.
You would need to remove/detach the 'vertical' landing leg from the body of the arm to be able to see if either of those have occurred. NOTE there is probably a screw underneath the LED cover, if so that needs to be removed to remove the landing leg, I can't remember if the M2 had any other screws attaching the landing leg to the arm.
If the motors' mounting screws have pulled through the arm and or the mounting point in the arm is broken the simplest thing to do would be replace the ARM and the motor.