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In your worldview, can Autopilot ever malfunction? Because Driver is always supposed to be vigilant.

Clearly, by your definition Autopilot cannot malfunction ever. Then why go on raising the point that Autopilot didn't malfunction, when you think it will always be a perfect system, even if it decided to mow down pedestrians

The autopilot can (and probably did) malfunction, but the responsibility rests with the driver.

Was it a malfunction?

Are you serious? The car decided to turn and hit a divider at 60mph without ever attempting to brake.

The reason the driver is required to pay full attention is because the software malfunctions in some cases.

If the car drove itself into a barrier because of malfunction, it's a manufacturing defect.

If the car drove itself into a barrier without a malfunction, it's a design defect.

If the car didn't drive itself into a barrier, well, that's a different story.