Issues with Precision Loiter using IR Lock

Hello, I am working on a project involving precise docking and am having trouble getting my drone to utilize precision loiter. It works sometimes, but most of the time triggering precision loiter when above the IR beacon causes the drone to oscillate (in pitch) somewhat uncontrollably. The drone normally flies quite well in stabilize and loiter mode, and is even able to do precision landing without issues, but for some reason putting it into precision loiter mode throws it into a frenzy.

Another thing that might be important to note is that I’ve modified my drone frame quite a bit to accomplish the type of docking that I want. This puts a lot of its weight in the front and rear of the drone, which likely increases the moment of inertia quite a bit. I’m sure this makes stabilization significantly harder for the drone, but again it has no problem hovering in a controlled manner in standard loiter mode.

Any things I could look into to try to make this work better? Here is a log of a couple trials I did: