FYI: the oscillation that I saw was in a line, not the circular toilet bowl. For me, sometimes the oscillation did not start if I switch to VR when stationary and don't move the sticks.
With the sticks in the center, VR is supposed to run the same code as PH.
A fast oscillation (much faster than a 4 second period) has been seen by some people for a long time (even 15.09).
https://forum.librepilot.org/index.php?topic=382.0In VtolPathFollowerSettings there is a separate (higher) PID for VR. You might try setting the horizontal VR PID to the same as the horizontal generic PID.
Did the new firmware help the east west oscillation for you? FYI, it uses the same settings as RC2, so you can just flash one then the other to test for a difference.