Target Panic is a 100% mental thing. To overcome target panic, you basically need to break down the entire shot process into baby steps and let each step become 100% subconscious. Practice your release without even drawing the bow, and just use a piece of string. Also Practice aiming by drawing the bow and just aiming and letting it down. And No shame in standing close to the target...
Guy once told me, you know how to walk, no need to practice that when working on shooting, working on your shot can be at 5 yards..