Also, lets get away from calling AV "fill mode". What is happening in AV is that the camera is attempting to capture a good ambient exposure, while the flash is trying to also expose the scene properly. When your ambient lighting gets too low, the camera must use a very slow shutter speed to get the ambient exposure correct. If the flash fires, it's duration is very fast (around 1/800s), giving you a properly exposed flash exposure mixed with a properly exposed ambient exposure. With a shutter speed of 4/10s, your subjects are going to blur if they are moving. This is what happened in the posted photo. You get a somewhat sharp flash exposure mixed with the blurry ambient exposure
If it had been daylight and your shutter speed was at 1/1000s and HSS was enabled (to allow the flash to sync with the camera at speeds faster than 1/200s or 1/250s, depending on the camera), what you end up with is a properly exposed ambient and flash exposure. They will be roughly equal and very few shadows will show.
Fill flash is used to fill in harsh shadows, and if done correctly will result in a properly exposed ambient exposure, with an underexposed flash exposure (usually around -1 to -2). This "fills in" the harsh shadows. This makes for a more interesting image because there are still shadows to show contrast and features, but the detail in the shadows are not completely black, as would often happen in harshly lit (bright daylight) situations.