Can't seem to tune this QuadZilla thing I made!

Problem: She flies stable in STABILIZE mode but I do have to hand control altitude. Once switched into LOITER mode she bounces up and down as the throttle pulses (audibly so). It soon becomes unstable and crashes with a few seconds.

RC Not Found is because I had the transmitter off to do this post while grabbing information.
I plan on doing a fresh accelerometer calibration before the next test.
The autopilot was purchased new in April 2024.

This is a heavy lift quad meaning it has a high thrust to weight ratio (well built mechanically as well) and I suspect that might be part or all of the problem.

I have made many attempts to make this build stable, ANY HELP is welcome!

Parameter file here.

BIN file of the problem in action here.

Instability starts at 17:08:45 when it is put into LOITER mode and an attempt at stopping a crash was initiated with switching to STABILIZE mode at 17:08:48. Impact occurred at 17:08:48.5. A TFminiPlus infra red sensor was used so I trust the altitude readings are good.

Here is a pic of the battery voltage oscillating in time with motor thrust pulsation.

Here is the bootup stream:

9/17/2024 5:41:58 PM : PreArm: Hardware safety switch
9/17/2024 5:41:58 PM : PreArm: RC not found
9/17/2024 5:41:41 PM : Frame: QUAD/X
9/17/2024 5:41:41 PM : IMU2: fast, high-resolution sampling enabled 3.2k
9/17/2024 5:41:41 PM : IMU1: fast, high-resolution sampling enabled 3.2k
9/17/2024 5:41:41 PM : IMU0: fast sampling enabled 3.2kHz
9/17/2024 5:41:41 PM : RCOut: PWM:1-14
9/17/2024 5:41:41 PM : IOMCU: 420 1001 411FC231
9/17/2024 5:41:41 PM : CubeOrangePlus 0042002A 30325114 33383839
9/17/2024 5:41:41 PM : ChibiOS: 6a85082c
9/17/2024 5:41:41 PM : ArduCopter V4.5.6 (7ce11b41)
9/17/2024 5:41:41 PM : Frame: QUAD/X
9/17/2024 5:41:41 PM : IMU2: fast, high-resolution sampling enabled 3.2k
9/17/2024 5:41:41 PM : IMU1: fast, high-resolution sampling enabled 3.2k
9/17/2024 5:41:41 PM : IMU0: fast sampling enabled 3.2kHz
9/17/2024 5:41:41 PM : RCOut: PWM:1-14
9/17/2024 5:41:41 PM : IOMCU: 420 1001 411FC231
9/17/2024 5:41:41 PM : CubeOrangePlus 0042002A 30325114 33383839
9/17/2024 5:41:41 PM : ChibiOS: 6a85082c
9/17/2024 5:41:41 PM : ArduCopter V4.5.6 (7ce11b41)
9/17/2024 5:41:41 PM : Frame: QUAD/X
9/17/2024 5:41:41 PM : IMU2: fast, high-resolution sampling enabled 3.2k
9/17/2024 5:41:41 PM : IMU1: fast, high-resolution sampling enabled 3.2k
9/17/2024 5:41:41 PM : IMU0: fast sampling enabled 3.2kHz
9/17/2024 5:41:41 PM : RCOut: PWM:1-14
9/17/2024 5:41:41 PM : IOMCU: 420 1001 411FC231
9/17/2024 5:41:41 PM : CubeOrangePlus 0042002A 30325114 33383839
9/17/2024 5:41:41 PM : ChibiOS: 6a85082c
9/17/2024 5:41:41 PM : ArduCopter V4.5.6 (7ce11b41)

Have you used ArduPilot Methodic Configurator software to tame the beast?

You do know that you are not supposed to use loiter until it is tuned, right?

How did you arrive at those Rate PID values? This is the result: