When setting up Multi-Battle, I set the options to auto sell 1, 2, and 3 star artifacts automatically. I do this by checking the 1, 2, and 3 star check boxes in the multi-battle options. Yet after a round of multi-battle, I find that I have 3 star items listed as "new" besides the expected 4 and 5 star items. I have not tested whether this is true for the other check box options as I figure that's for people who actually get paid to test this game.

I'm not a programmer, but if this is true across all settings, then it could be a reference issue (Game coding assigns 1 star items as "level 1", yet the check boxes are coded for 1 star as "level 0" or some such offset.)