B98D226F-F371-41BA-AB8F-62DFDD669A2E.jpeg - Bild entfernt (keine Rechte)I’m towing a 2012 Familia 320 with a 2016 Volvo XC60 and I’m hearing clunking noises now and then and it’s not happening over bumpy roads. I’ve noticed that I can swivel the entire head about forty degrees to the right and back to the say twelve o’clock position. I’m thinking that this is the issue and that there should be no play at all. I’ve attached a photo of it connected which shows it’s not quite vertical on the towbar.

I doubt it's anything to do with the actual hitch.
The hitch socket fits over the towball and the silver central lever with green/red bits showing at the end clamps around the towball neck to ensure it can't come off. The green edging on the red topped button indicates that the towball is fully engaged. The rather 'weathered' handle with red on the end engages the pads that also engage with the sides of the towball and inhibit unwanted movement, whilst still allowing intended movement eg turning corners. There is a possibility that those pads are worn and require replacement/reshimming.
The other possibility and probably more likely to cause the noise you describe, is that the hitch damper requires replacement. The damper controls the movement of the hitch bar in and out, smoothing take up and reaction as the car accelerates and slows down. The rubber bellows is part of the same system. If the hitch damper has worn out you'll often hear a clunk under braking and another under firm acceleration.

Fantastically informative replies which I’ll address and hopefully have it sorted. Many thanks

Hi, Not sure if this helps but I had similar noises on my last car and traced it to a removable tow ball .
I had it checked and it was safe and within tolerance for movement but the noise drove me mad. It happened during braking, acceleration and at random times, and sounded quite bad.
New car and fixed tow ball solved the problem
David