In this example, I wanted to show that if you blindly compensate a voltage-mode buck converter using a PID by placing two complex zeroes for compensating the complex double poles of the \$LC\$ network then you end up with an oscillating response as you show.
What dictates the small-signal response of a switching converter operated in closed loop is its output impedance. For an open-loop voltage-mode-controlled buck converter, this output impedance \$Z_{out,OL}\$ is resistive, then inductive, resonates and then capacitive to eventually land on the capacitor ESR. Once you close the loop, the stepped output current - which is seen as a perturbation - is rejected by the sensitivity function \$S=\frac{1}{1+T(s)}\$ in which \$T(s)\$ is the compensated loop gain. The closed-loop output impedance \$Z_{out,CL}\$ becomes \$Z_{out,CL}=\frac{Z_{out,OL}}{1+T(s)}\$. This is what the below graph shows:

However, because of the flaw in the compensation scheme, you can see the original \$LC\$ filter peaking is not damped at all and shows up despite the loop closure. This is because there is not enough loop gain at \$f_0\$ and any excitation in the output reveals the oscillatory response you've shown. This is not a loop instability - the Bode plot shows adequate margins - but the system does not have enough gain at the resonant frequency and cannot fight the perturbation: no gain, no feedback!
The proper compensation strategy for the buck operated in voltage mode is to select a crossover frequency that is 3-5 times higher than \$f_0\$, making sure the system will have enough gain to fight the \$LC\$ oscillations. When this is the case, the closed-loop output impedance no longer shows peaking as shown below:

The violet curve shows the open-loop output impedance while the red curve illustrates a closed-loop output impedance with a very low crossover, well below \$f_0\$: the response of this converter will obviously ring considering the untouched peaking at \$f_0\$. Now, push crossover to 4 kHz and the black curve shows how the new closed-loop output impedance looks like without peaking anymore, bringing a good transient response this time.