Shift-Command-5 FROZEN BOX

Hello HOURRUSH.

I see from your post that you need some assistance with taking screenshots in Catalina. From the description of your experience you can either close the screenshot overlay by pressing the escape key on your keyboard, or clicking on the "X" icon to the left of the toolbar. To address the concern of why you see "Record" instead of "Capture" is because you have the screen recording option enabled. Simply select the type of screenshot selection you desire for that to change. The information and article below explains how to take a screenshot:

"Capture a selected portion of the screen

Press Shift-Command-5 or Shift-Command-4 as described below.

In macOS Mojave or later

1. Press Shift-Command-5 to see the onscreen capture controls.
2. Click Capture Selected Portion .
3. Drag to select an area of the screen to capture. To move the entire selection, drag from within the selection.
4. Click Capture.
5. A thumbnail of the screenshot briefly appears in the corner of your screen. Interact with the thumbnail to edit the screenshot, move it, or take other actions. Or wait for the screenshot to appear on your desktop."

How to take a screenshot on your Mac

Take care.

I had the same issue and your solution worked. Mine was also on the recording and by clicking on Capture Selected Portion the issue has been corrected! THANK YOU!