Right, it does set the focus at a fixed distance when you tap on the screen in video capture mode. Thanks for this.
I tried it. I see what you mean, and I think I know what's happening. Since the L1020 does not have IR beams for focus assist, it "relies" on detail sharpness to gauge its focus. Hence, the focusing algorithms work best for brightly-lit subjects, but not so for darker subjects/environments.
Last night, I was in a bright room so auto focus and manual focus, both zoomed in and out, worked flawlessly. Now, I'm in a slightly darker room. Zoomed in, the manual focus doesn't always focus properly but it does most of the time. This means that there are times when the focusing algorithm is not able to detect enough sharp details to gauge its focus - due to the room being darker. This is the reason why the continuous auto focus, on the other hand, keeps losing and adjusting focus while recording (or even before recording for that matter).
It's most likely that at the moment you tapped on the screen for manual focus while zoomed in, the algorithm detected enough sharp details that's why focus is successful. But this will not be the same for continuous auto focus since it's seeing the instances both when the algorithm detects enough details and when it doesn't.
Imagine the difference between a single shot rifle and a fully automatic rifle firing on a randomly moving number of targets, the target being the sharp details the algorithm needs to focus on and the number of targets being the brightness of the subject. You can aim the single shot rifle, but the automatic rifle is bolted down to a fixed position.
Manual focus would be like firing the single shot rifle - chances are you'll hit the target (achieve focus) since you have the luxury of aiming your rifle (i.e. choosing your point of focus), but sometimes you wont. Continuous focus, on the other hand, would be like firing the fixed fully automatic rifle on full-auto and unlimited ammo (oh, yeah!), keeping the trigger squeezed - you'll definitely hit something but most of your shots would most likely miss.
Now, the brighter the room, the more targets would be in your line of sight (higher probability of hitting something).
Bottom line: both manual and continuous auto focus would work better in brighter environments.
Hope this helps.