Exactly. Theres a stack of very thin washers inside that set the bearing pressure when you tighten it. The " nut" is not as tight as you night think.
Sometimes....and it is sometimes....if you have a wobbly freehub, removing the very thinnest washer will tighten it back up, if wear has been the problem. But, its not a given as the race wear can be quite elliptical due to the direction pressure is applied/ released as you peddle....i assume. Also care needs to be taken as this action essential moves the outer body closer to the face of the hub and if you remove a thicker washer, it can rub on some hubs.....really not good.
If you have really bad one, just take it apart and see how it works, there are just 2 rows of bearings, that are fiddly, but can be replaced....buy pointy tweezers.
The pawls get stuck too, which stops them locking ( result is a free spinning cassette in both directions!), this is often due to corrosion or gunk. The pawls come out by simply releasing the round wire spring clip....its also the bit that springs them outwards to engage the ratchet teeth.
Just remember the pawls really want the very thinnest smear of the very thinnest grease, or you will stick them shut! And don't over load the bearings or it will migrate to the pawls when you reassemble.
Why not have a play, if its scrap, what you got to loose! Ive rescued many freehubs and put them back into working action.