Too much oscillation in estimated pitch and roll as well as their rates

There are severe oscillations in the estimated roll, pitch and their rates as seen in our logs, especially when the roll input is zero. Also the height sometimes drifts randomly, although it comes back after sometime. All this was measured in the Altitude Hold mode.

So far, we have tried to do roll and pitch PID tuning, and we also increased the MPC_Z_VEL_P parameter to improve the altitude hold capability. But it hasn’t improved the situation much. What can we do to improve the situation?

Our guess is that we have too much vibrations (although we have an anti-vibration pad on which PixHawk is mounted). We also have propeller guards installed (which we built ourselves). We are using a TF-MINI sensor to measure altitude, and flying indoors upto 2 meters over a flat surface, with the altitude measurement set to be terrain following.

Log file:

Or the logs.px4 link:

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