V1 Blurred pics

I love my V1 when used outside in good or average light. 10-30 3.5 is a get travel lens.
Problem is the camera when in auto mode and inside drops the shutter to 1/5 or slower with flash pics.
Almost everyone is blurred out. It will stay at 1/60 and then shift to 1/5 and all images from then on are blurred.
Yes I know I can go to shutter and fix it at 1/60, but doesn't that defeat the purpose of the auto mode?
Shouldn't the software know that you can't hand hold at any speed less than 1/60 without getting blur?

I have done the software update, but this did not fix the issue.

First, you may get more responses if this was in the mirrorless section. What you may want to do, is put your camera in burst. That way, you minimize how many pictures are blurred - i do not own a V1 and have never shot with one, so this is just friendly advice. Secondly, you have an advantage over us DSLR users - you dont have the dreaded mirror slap problem! Right there, camera shake is reduced and you should not be getting as much as in a DSLR. You should really get out of Auto mode though. Your V1 is much more than a point and shoot. You need to post some of these blurred pics for us. Also, is your subject moving? When you say blurred, do you mean out of focus? Please post some pics.

Your expecting a lot from the software. The software does not know if you are hand holding or using a tripod. If you have super steady hands and can hand hold at a 1/15, 1/30 or 1/60 sec. Use S (shutter priority) mode and set it to at least 1/60 and get good pics