My son is 8 weeks old and sleeps in bassinet/co-sleeper. He sleeps in love to dream newborn swaddle and has done since birth. I place him in middle of bassinet and he wriggles himself to the side of mesh . Does his sleep space need changed ?

Some babies do not respond well to swaddling & some like their arms free to touch their face or suck on fingers.
Many of these babies will wriggle & squirm in an attempt to get arms free.
The product you describe is one of many different types of swaddle suits - but they are all classified as swaddles, ie the baby’s arms are tucked in & not free.
You can try going back to the recommended muslin or cotton swaddle but wrapping with arms out as illustrated in link below.
https://rednose.org.au/article/wrapping-babies

In this same link is also some information “wrapping & swaddle products” that you may also find helpful.(scroll down page)

How does he go with tummy time when awake?
https://rednose.org.au/downloads/RN0407_22_Tummy-Time.pdf

Always continue to place baby on back for sleep.
What happens if you try to reposition him?

He may also be starting to attempt to roll.
If he does look like attempting to roll, then swaddling, wrapping needs to be ceased & he needs to transfer to his cot.
He will need arms free & the space of a cot to roll safely
https://rednose.org.au/article/what-do-we-do-now-that-a-baby-has-started-to-roll-over