Couple things jump out at me with your config.
M350 X8 Y8 Z8 E8 I1 ; Configure microstepping with interpolation
Interpolation only works if you set the microstepping to 16X, your running a coarse 8x atm.
M566 X17 Y17 Z0.4 E4 ; Set maximum instantaneous speed changes (mm/min)
The XY values look a bit strange here, try setting them to a more normal 200-500 range perhaps? Maybe 100 for Z?
M203 X1000 Y1000 Z4 E17 ; Set maximum speeds (mm/min)
A bit slow for the X and Y (16.6mm/s) perhaps? Z is crazy slow at 0.06mm/s not sure how well its going to behave that slow. E is also slow, with direct drive your going to want it much much faster at least the 1500 range.
Perhaps your config looks like that because your troubleshooting but if not a more normal baseline might rule out the easy stuff.