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Good news: software update 2018.32.2 solves nearly all bugs introduced in 2018.28.1

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Should I update, or stick with the older, less frequent nag version?
Can't decide that for you. Yes, you'll get the frequent nag, but having one hand slightly on the steering wheel gives you no nags at all. Nags are only more frequent at highway speeds. In slow traffic it is still the same.
On the other hand, I skipped an update not so long ago and found it extremely annoying it keeps popping up the update notification on every single drive. So, I guess it depends on which of the 2 annoys you the most.
If you're looking for big improvements in AP handling, there are none. The big one is going to be V9.0, some time later this year (hopefully)
 
Not yet


Ah, now I see what you mean. Occasionally, it doesn't care about that. But sometimes it slams on the brakes, where in reality the car would be gone by the time you arrive at that spot. But here also, I'm guessing the car takes it on the safe side.
The problem is that for now (and I think for a long time still) the car can only react to a given situation. As humans we are very good at predicting paths of moving objects. But I don't think the AI is that far yet. It's still a bunch of algorithms that go through a neural net for image recognition. I don't believe there is any path prediction in the car yet.

Got the update myself now. Still seems pretty poor in this respect :)

Velocity here shouldn't be that hard to determine. I just don't think it's a scenario that gets much attention from their team.