As others surmise, it's a wobble saw. Adjust the cammed washers either side as your two images show to create the width of cut you want. Then lock it in place on the spindle with the nut.
They're not used much nowadays, perhaps because one characteristic they have is to create a curved bottom to the groove. I haven't seen one in use for perhaps fifteen years although I do have one in my tool cabinets, along with slotted collars of various types. The slotted collars would give anyone from the HSE the heebie-jeebies if they spotted any of them mounted and working, ha, ha. Slainte.