Try retracting/redeploying landing gear. If that doesn't work, exit game to main menu and relog.
o7, cmd and welcome.
Edit: you'll have to increase your speed slightly to disengage DC and get LG control.
I've heard there is a bug affecting thruster strength especially when using the DC (it is to do with to rotational correction), so often the DC thinks the ship has more power than it really does and gets itself into situations where it can't avoid collisions. Best to use manual docking until it is fixed.