MRI reports are never to be considered as the only way for orthopaedic treatment. A physical examination by an Orthopaedic surgeon is a must as in your case. The cystic lesion is the only thing that could give you trouble and needs to be seen clinically by an Orthopaedic or General Surgeon. Knee cap related complaints seem vague and will not "move freely" without an anteceding injury.

Ligament tear is there Knee brace, medicine followed by exercise Step wise treatment will be helpful

The symptoms you describe—pain while climbing stairs and walking, along with a feeling of looseness or increased movement of the kneecap—may indicate patellofemoral pain syndrome or patellar instability. This could be due to ligament laxity, muscle imbalance, or previous injury. Conservative treatment is often effective and may include rest, physiotherapy, and strengthening exercises for the quadriceps and hip muscles.

You have got 2 problems as per MRI report. 1. ACL Sprain- most of the times it’s mild and recovers by its own 2. Cystic intramuscular swelling- need to check physically to confirm