$A$ is regular
Design a $DFA$ $M1$ for language $A$.
Design a $DFA$ $M2$ for $(0+1)^*1(0+1)^*$
Do the Intersection, using $M1\times M2$
Now,We will have $DFA$ $M$ that accepts all strings $x1y\in A$
There will be at least one transition in $M$ such as $q \times 1 \rightarrow q'$,where $q \neq q'$ ,while moving from start state to final state, and not in closure (not is closed loop, $x1y$ guaranteed for such transition), replace $1$ by $\epsilon$ in that one transition as $q \times \epsilon \rightarrow q'$
so , after converting $\epsilon -NFA$ to $DFA$, that will be $DFA$ of $A'$
$A'$ will be Regular