Google has suspended a feature for the latest Android that may come back with the next update. Android 12.1 (L) lacks the option to see where the user is typing on the screen when recording a screen.
The public source code shows that this is probably only a temporary solution that Google is probably already reversing with Android 13.
Android 12L has removed the “show touches on screen” option from the screen recorder dialog, but it’s likely due to the issue mentioned in this code change: https://t.co/i71A6QjT0u
The option is currently present in Android 13 so this issue has likely been fixed already. https://t.co/v13BI9HTAp pic.twitter.com/t6J39gtGQO
— Mishaal Rahman (@MishaalRahman) March 8, 2022