Definition of done

Scrum team should discuss what to do. Are they able to adress the issue during the sprint? Does it require to renegotiate the work scope? Is sprint goal in danger when adressing it? Is value delivered when not adressing it? Should be sprint cancelled? 

what is right approach if during mid of sprint, team received a poor performance feedback about increment, whether team should wait till sprint review to update DoD or work on improvement in current sprint?

Generally speaking, the most effective way to inspect and adapt is as closely as possible to the time and place of work being carried out. Matters are then likely to prove easier to fix, and less remedial work will be needed. The Sprint Review is a formal opportunity to ensure that the product is inspected and adapted at least every Sprint.

so suggestion is to discuss feedback with scrum team rather waiting for retrospective.

I'm confused by your initial statement

team received a poor performance feedback about increment,

If this is for a previous increment, my question would be why wasn't the Sprint Review held on the last day of the Sprint? This would allow you to discuss in the Retro and make possible changes to the DoD. As @Ian points out, you want to adapt and improve asap.

Without knowing more, this may be a good topic to discuss at retro to gain a better understanding of what the underlying problem was. There could be many reasons the increment didn't meet the stakeholders expectations. For example:

• PBIs weren't refined and clear enough
• Acceptance criteria was poor, lacking or non-existant
• PO isn't communicating enough with Stakeholders and doesn't understand what they are asking for
• PO didn't prioritize the Product Backlog based on Stakeholder feedback
• Something is missing from the DoD
• Items weren't Ready to be worked, but were pulled into the Sprint anyway

Search for the root cause in a retrospective and adapt so you can avoid the same issue in the future.

Team received a poor performance feedback:

Basically that showcases that there is not enough transparency in the system and some expectations are not managed.

But just to answer:  Yes, it can be updated anytime however, retro is formal opportunity to inspect the DoD along with other things.

However, please note, as per SG Nov 20, during the Scrum, if you make any changes in a Sprint then quality should not decrease. DoD impacts the quality aspects hence please make a note of it.