Whether it's an up close subject or at a distance, using flash with the camera is a waste, whether I turn on the flash or use the Auto option. It's like it's too bright!
It sounds like you're using the flash in very dark conditions, which it isn't really meant for. The flash is for backfill and dim lighting, not for lighting up a dark scene. And it doesn't function at much of a distance at all since it's just an LED. Cloudiness may also be due to smudges on your camera lens. Clean it with a microfiber cloth to remove any fingerprints, grease, etc.