There is indeed some low pass filtering applied to the LPMS-IG1 gyroscope output. Usually this improves the quality of the signal especially for applications with slower rotations. In case of your simulator it is probably better to change to settings for the sensor to become more responsive. Please follow the steps below to tweak the settings:
Save sensor settings file from sensor
Open IG1Control
Connect to Sensor
Go to menu > Save settings to file
Open the file and you should see the default sensors settings as below:
Change acc/gyroscope settings:
Accelerometer settings:
AR (accelerometer range, g): 2, 4 (default), 8, 16
AOR (accelerometer data output rate, Hz): 3, 7, 15, 31, 62, 100 (defaut), 125, 200, 250, 500, 1000
AF (accelerometer 3-dB bandwidth, Hz): 5, 10 (default), 21, 45, 99, 218, 420
Gyroscope settings:
GR (gyro range, dps): 400 (default), 1000, 2000
Gyroscope I (high precision) settings:
G1OR (gyro data output rate, Hz): 100, 200, 400, 800, 1600, 3200, 6400, 12800 (default)
G1F (gyro low pass filter): value of G1F is calculated as LpfOrder*1000 + LpfFrequency
LpfOrder (low pass filter order): 2, 3, 4 (default)
LpfFrequency (low pass filter cutoff frequency, Hz): 10 (default), 35, 45, 50, 70, 85, 100, 140, 175, 200, 285, 345, 400, 500
Default value: 4*1000 + 10 = 4010
Gyrosocpe II (High range) settings:
G2OR (gyro data output rate, Hz): 3, 7, 15, 31, 62, 100 (default), 125, 200, 250, 500, 1000
G2F (gyro 3-db bandwidth, Hz): 5, 10 (default), 20, 41, 92, 176
Save file and reload the settings file to sensor: menu > load settings from file
Save settings to sensor: menu > save parameters to sensor
Power cycle
After that the yaw correction should become more responsive.