I do not remember dropping it, but the camera simply won't extend its lens. It is only a year old, and I really don't...

There are two possibilities for this issue. You are correct in your thoughts. The camera does have scene settings that could be turned on and off. See troubleshooting guide for auto flash settings. The other possibility is that the flash or capacitor has failed. If this is the case then the device will have to be repaired. You will need to visit the repair page for replacement of the flash component Here