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The ping times are pretty bad.

If you have an intel Ethernet chip have you disabled IRQ coalescing?
This is described in the hm2_eth manual page:

man hm2_eth

gnipsel.com/linuxcnc/debian-12-eth.html

If you get the error right when the torch starts, that suggest a EMI 
or grounding issue . Do you have a flyback diode across the relay coil?

The L292 is listed as a DC motor driver. However a pair of them can be used to control a stepper motor.

If the motors have encoders on them, they may be DC servo motors. The drawing seems to show two L292's per motor, so they are likely steppers.

Jon

A runaway means positive feedback

Does the motor hold position with just the P term?
I would comment these lines out:

net encoder.02.vel -> pid.3.feedback-deriv
net motor.02.vel-cmd -> pid.3.command-deriv

and try again

Also note that raising the servo thread rate (to say 4 KHz)
will improve the PID loop performance, and also that
final tuning needs to be done under load.