I don’t know for fact, but yes, I would agree that the V3 has more issues in bright light (or worse bright lights at night) than the V2. There is only so much dynamic range to work with.
I had to move my video quality down to SD on my V3 to get enough time on my uSD cards. Regretting having to do that. I needed clarity in the image when I didn’t have it. Moved my high capacity uSD to-do up on the list so I can get back to HD quality with better clarity.
I might have to go rummaging the interwebs for some V2 then. I have 3 V3 that shoot a fair distance. The digital blurring \ pixelation smudging, like you said, are pretty significant. If that doesn’t improve when I move to HD, I’m going to need to consider a different cam w\ better resolution at distance.