Pixhawk 4 with PX4 manual flight very wobbly

I have been running PX4 v1.11.3 on the Pixhawk 4 controller. The drone is an F550 hexacopter. I am using most of the default params, except for the usual ones that have to be changed like battery, frame, orientation, etc. But I have not changed any PIDs. When flying it manually in STABILIZE, ALTITUDE, or POSITION modes, it behaves very twitchy. As it moves it wobbles, and when I put the sticks in neutral, it stops very abruptly and overshoots. However, when doing an autonomous MISSION it flies very smoothly. Why the difference? Do the PIDs need to be adjusted, and if so, which ones?

I’ve used earlier versions of PX4 with the Pixhawk 1 and it never behaved like this. I think there must be some differences in the way the new combination of HW and firmware performs.

Has anyone had the same issue? Any help will be appreciated.