I would not argue that your group is larger than desirable, but it is a centrally weighted group with an obvious center. That simply means most of your shots go into the same place. A few wander > < /\ \/ . Basically so what. You can see the center and I can see the center. Besides, counting half way into the number of shot holes gives you the center anyhow. Keep at it. You are making progress.
Real progress you can see would be to center the group. See above for that info.
Once they start impacting center, you can figure out what causes the individual outer hits. My suggestion is to center the group which you are clearly capable of making. I mean adjust your sights as needed. Then shoot more.
Once the group is centered, hits away from center have a cause. The error chart is accurate, just a waste at the moment until you get most of your shots into the center.
Mostly practice, sight alignment, and trigger control will help reduce overall group size. About 60 percent of your shots are in a 2" group. The rest will start to get closer and closer to the core.
But you are off to a good start.
Your only real mistake is asking for advice on the internet.
Which unfortunately mirrors the real world. Good and bad advice mixed which is hard to tell apart.
The advice to avoid with a passion is the group of inter-neters who insist every gun shoots to your point of aim with the sights centered on the slides. Total Huey, Duey, and Luey advice. (Read Bull Shiest)
The only thing that matters is where your gun shoots in your hand with your grip and your eyes and your trigger pull. Notice the YOUR. No on else can do it for you.
With practice, as your groups shrink, refine your personal zero. left and right, with that gun so that your groups are centered with your gun.