There’s no reason why ‘distress’ should be wrong. Mala translated literally means ‘bad things’, but no one would use such awkward rendering, so you’re (relatively) free to choose what you want to interpret these ‘bad things’ as.
Some translations take malis here as an ablative of time/circumstances (a particular version of the locative ablative): in their distress / in the evil they were in
Other translations take it (and I would prefer this reading) as an ablative of means implying here also a cause (a version of the instrumental ablative): by the means (because=) of the bad situation / the distress they were in
The syntax works thus (as you probably know already): pavor muliebris [hīs] malīs vincitur → pavor muliebris [hīs] malīs victus est → victō(abl.) malīs(abl.) muliebrī(abl.) pavōre(abl.)