The CFDMesh you've generated is not being used by the VLM analysis -- they are separate things.
The VLM uses a mesh derived from the on-screen wireframe. You should look at that for the number of spanwise and chordwise panels. Also, look at the VSPAERO viewer to judge your solution.
The convergence actually looks about like expected, it will bounce around a bunch like that.
Why on earth are you running 21 AoA on a VLM analysis? Look at your CL vs. Alpha, CM vs. CL and CL vs. CD -- do you really need 21 points to define those curves?
Rob