I know the internal microphone is not the greatest in terms of audio quality, but nonetheless for reference purposes, it would be nice to hear what was going on (including conversations) when video recording takes place.

My Osmo has barely been used, and I recently returned from a trip to New Zealand, only to discover that the latter half of all my footage contains NO audio! I have done some tests at home, and audio is only recorded if I have an external mic plugged in, otherwise, nothing gets recorded. And I do have audio recording enabled in the Settings.

Has anyone else experienced this fault?

I just selected the option to "Reset Camera". This seems to have fixed the problem for now. I have noticed that when audio records successfully, the little audio meter at the bottom responds to sound. Before I reset the camera, the audio meter did not respond to any sound, and no audio got recorded. So I guess I will be keeping a closer eye on the audio meter in future so I can see whether audio is actually being recorded.

Hello, NickTony
Thanks for your feedback.
May I know what the firmware of your Osmo is?
I assume that you're using the X3 camera with the latest firmware v1.6.2.10, am I correct?

Hope you'll enjoy the Osmo.