I just got around to installing my NOS Progressive shock.
Like I said above, my shock came with inserts in the eyelets that were zip-tied in place. There were supplemental instructions for K bikes in the package that mentioned the inserts being required for the K-bike.
After it's installed, the shock rotates on its axis -- maybe 10 degrees or so. But it does not move laterally. The bushings are stable on the bottom post and top bolt.
For what it's worth.