Sorry, I didn't see the diodes.How can you say that? R6 in series with two paralled diodes provides the nonlinear resistance needed to control the output.
A sinewave oscillator is not supposed to have distortion. The diodes cause distortion.
A Wien bridge oscillator with an ordinary old light bulb for stabilization of its output amplitude has very low distortion and some that use a Jfet also have very low distortion.