I got a detailed response from HTC support about clearing cache from the Camera app as well as from the device. The latter seemed complicated and a bit overkill to me and sounded like a canned response so I didn't do both of their suggestions. But I did clear the cache from the Camera app and that did not help. So, I revisited my earlier unchecking of Auto-Enhance. I had read somewhere (here on these forums i think), that it was best to NOT use that setting. But perhaps my problems started when I read that and unchecked it -- although resultant problems were only noticeable on difficult lighting indoor shots.
The definition of auto-enhance seems related. My spin on AutoEnh is that in high ISO settings the camera takes a crappy picture by design and then auto-enhance comes in afterwards and cleans it up. So it is kind of a workaround for a not-so-great camera! So I will keep Auto-Enhance set. So far indoor pics in the same problematic lighting no longer have all that crap running through it. I think they call that "noise".
And I recently got a new Canon point and shoot that takes great pics and I will just make sure I take it with me more often!!!