The present teaching relates to method, system, medium, and implementation of in-situ perception in an autonomous driving vehicle. A plurality of types of sensor data are acquired continuously via a plurality of types of sensors deployed on the vehicle, where the plurality of types of sensor data provide information about surrounding of the vehicle. One or more items surrounding the vehicle are tracked, based on some models, from a first of the plurality of types of sensor data from a first type of the plurality of types of sensors. A second of the plurality of types of sensor data are obtained from a second type of the plurality of sensors and are used to generate validation base data. Some of the one or more items are labeled, automatically, via validation base data to generate labeled at least some item, which is to be used to generate model updated information for updating the at least one model.