When it comes to the retention of the mechanism, a standard internal circlip is doing it's job, but for a better, full circle solution, a 'Spirolox' multiple turn retaining ring is an option.
However, the fundamental flaw with the slave cylinder here is the excess clearance of it's diameter to the brake housing, allowing it to skew. That's where I'd be looking to improve things. If the slave can be made to bottom out in the housing, then it should no longer be able to tip to one side. If you can source some well fitting, hard shims that can go between the slave cylinder & the circlip/retaining ring, it should solve the issue.
It's all about the elimination of 'play' in areas that cause issues. I have an MSC hydraulic backplate that had not been assembled with the slave cylinder fully bottomed out. The consequences were that the 'C' portion had a crack @ it's base. I reasoned that there is no real shear strength in the 'C' portion & as the thread had been well engineered in the remaining full circle portion, I scrupulously cleaned it all up prior to reassembly with Loctite. That brake has been on a race machine for many years so has been trusted literally with my life.....
