Nikon F801 program mode

I'm not sure if my Nikon F801 has an error in program mode, or if it's a Nikon designed 'feature' ?

Using a 50mm f1.8 af-d, program mode resists picking f1.8 as an aperture. It'll open up to a maximum of f2.8 and start selecting slow shutter speeds rather than picking f2 or f1.8.
I can jog the program to open the lens up and use a faster shutter speed and override it, but why does it pick say f2.8 and 1/30sec rather than opening up to f2 and 1/60sec ?

Read page 34 of the manual. You can make it select the larger aperture by select program high.

It's an AF safety net thing, early AF cameras are at their worst with the lens wide open, but as Chan Tran said you can "force" it a bit by your choice of P-mode. I have played with program mode on my 8008s (same camera) but never on a paying job. I prefer manual exposure and manual focus.