Arducopter 3.6 quad "bounces" in alt hold

Hello guys, I need some help. I am running arducopter on a pocketpilot board, pocketbeagle and custom pcb, and have been able to get it to fly well in stabilize but in alt hold mode it kind of bounces in the air. Motors are definitely warmer due to this as well. I am running a vdq230, 230mm quad, with emax rs2205s race motors a spedix gs45 esc and a 4s 1500 lipo. So far flying in stabilize and acro is fine exept the quad feels kinda sluggish with stick input compared to betaflight etc. However when placed into alt hold it kind of bounces and even with this behaviour luckily I was able to complete an autotune that helped this thing fly dramatically better as far as I could tell.

Here is a video showing the behaviour I am dealing with in alt hold. https://youtu.be/WIHRPcr8Ep8

A picture of the quad so you can get an idea of the frame. etc

https://drive.google.com/file/d/1tpBO8BI5lrXLX1Y80Oo7Y9WMVSf_Fea9/view?usp=sharing

vdq2308-8-2020.param (13.3 KB)

What are your vibration levels? Reduce those, update to copter 4.0.3, enable the dynamic notch filter and follow the tunning process instructions on the wiki, after that to another autotune. The coper will fly a lot better.

I am running arducopter on linux. I cant even get arducopter 4.0.3 to connect to a ground station. I don’t know what could be the cause but it seems like there is definitely issues with 4.0.3 on the pocketpilot which is a diy cape at the moment for the pocketbeagle by ti. I had the same issue with higher versions of arducopter after 3.6 on the bbbmini and pocketpilot. both arm boards use the same processor for ti just different device tree overlays.
I need to be able to run version for 4.0.3 as well due to the work being done on the msp protocol for ardupilot to allow the use of osd on dji hd fpv goggles. I have a caddx vista that I wont be able to arm and take out of low power mode.