Too high PID make motors vibrate

Last week I finally received MN 3508 380KV Tmotors and blheli 35A Tmotor ESC. I hooked it up and went for a maiden with the quad, when I noticed that the motors vibrate furiously. I ended the maiden and later took one motor on my bench test rig. The same motor/prop/esc that vibrated vigorously on the quad now preformed smoothly without any vibration throughout the whole throttle range. I then tried another flight with a 3S battery. The vibration were much lesser now and I was able to fly. I tried the same with 4S and it flew but still vibrating.
Later I downloaded the logs and I saw that on the default pids the RCOUT for motors was oscillating vigorously, I then lowered pitch/roll pids and the vibrations were almost gone, but the quad felt sluggish and even wasn’t stable.

After that I tried notch filtering and it didn’t change anything, but using a pot on CH6 and changing rate-p value for pitch/roll I can get the most vigorous vibrations and oscillations to repetitively occur and disappear.

Here are the logs: Original pids

Lowered pids

I am running out of ideas what to do. Please help