Apologies for the confusion
@Tony, I forgot to mention that the supply is driving a LED string which is PWM'ed at a lower frequency to dim it. See attached the waveform of the simulation showing the zoomed out waveform and a zoomed in PWM "burst". Green curve is the primary MOSFET drain, red is the primary MOSFET gate, and blue the current through the LED string.
I'm assuming the dampened oscillation after turn-off of the secondary MOSFET (which PWMs the LEDs) is because of the energy that's stored in the secondary transformer winding and has nowhere to go when the secondary MOSFET turns off the LEDs, and it makes an LC oscillator with the output capacitors.
But I see that in the sim, the drain voltage of the primary MOSFET never overshoots the 100V VDS(max) and for some reason I don't understand yet, it tracks the output voltage quite closely despite the prim/sec turn ratio not being 1:1. Whereas in my circuit, the drain voltage only appears to be clamped by the parallel TVS diode. I've ordered some IRF630 MOSFETs to see what happens when I remove the TVS diode, which would probably destroy the Infineon MOSFET but IRF630 has a VDS(max) = 200V so might survive.
I'm going to try to vary the load and check if that has any effect on the behaviour.
Supringly, according to the simulation the output voltage should be stable, and that's also what I observe in the circuit. But for another reason I haven't figured out yet, it seems to stabilise at a significantly higher voltage than the simulator suggests: 88V DC rather than 70 - 72V DC.