Drone is continuosly vibrating in flight and when i change to alt hold mode the drone is coming down

A 7" is not going to fly on default parameters.
Here are a couple resources to use to tune it properly:
Methodic Configurator
7" build Don’t copy the parameters file this is just for reference.

If you want to look at a metric that is indicative of the problem here you go:

The infamous Output Oscillation.

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