I think I might have found something.. Make sure the "Experimental Flight Model" is chosen and then reload the aircraft. I hadn't done that previously. Also, do not increase the sim speed over 2X. For me at least, I can do 2X and it is okay, but anything above that it will do the bouncing.
Is there still no solution to this issue? It happens every single time the sim speed increase above 1.5X. Really starting to lose patience and confidence with this aircraft.