Comparing this to when I simulate the system with a different controller:
sys2 = ss(A-B*K1,[],C,0);
sys2.OutputName = 'θ';
t3 = 0:0.05:15;
x3 = [0 0.05 -0.05 0 0 0];
figure(1);
u3 = zeros(length(t3),1);
lsim(sys2,u3,t3,x3);
title('Small Initial Conditions with Controller');
grid on;