Update to iOS 6.1 with Apple Configurator Crashes iPad

When I connect any iPad 3 running a prior version of the iOS to Apple Configurator, it automatically starts to update the iPad to the latest iOS - in this case 6.1. The update then fails and the connect USB to iTunes screen appears on the iPad. I first noticed this when updating from 5.1.1 to 6.0, months again, but I learned to work around it by first updating the iOS and then connecting the device to Apple Configurator. We are running AC 1.2.1 and Automatically Refresh is truned off. Anyone else seen this? Has anyone found a better workaround?