The runout can come from the ER32 collet. Also check the collet holder for runout.
A burr or some swarf can give a huge runout. Check the boring of the spindle and collet holder.
You probably do know how to install the collet in the chuck. If not, have a look at this video.
My three collet/spindle sets all came from a local (Dutch and German) supplier and are within spec. None of the collet and collet holders I ordered from AliExpress or Amazon where any good, even the expensive ones.
As I use the collets on the lathe, mill and rotary table, I have ER32 for standard. The CNC router uses ER16 and the brush less drill for the lathe ER11.
The oversized ER11 collets I have, can be difficult to remove.