Why does my iPhone screen have a red dot in iOS 14?

My question is everytime that red dot appears my call won’t go through. Why is that if its the microphone?

Coincidence. If the call connected and the red dot didn’t appear you couldn’t have a conversation because the mic would be off.

There is a red dot if you selected Light or orange if Dark is selected.

I have not selected light. I checked. The red dot is there.

No apps using or authorized to use mic? #DoubleChecked

The red dot is an orange dot that looks red with certain backgrounds, and means the same thing as the orange dot.

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Why do I now have a red dot on my iPhone

In my contacts it will show groups on top left I don’t understand

Your phone can sync contacts from different sources. Each source is called a “group”. When you tap on Groups you can see what contact groups you have on your phone.

Why the red dot is appearing and what’s the meaning of this

As has been explained umpteen times in the thread you posted to and didn’t bother to read, the Red/Orange dot means the microphone is on, which is sort of a necessity when you are on a phone call, or the other party couldn’t hear your voice.

The dot is orange, but with some background colors and settings it appears to be red.

Here is the official explanation→About the orange and green indicators in your iPhone status bar - Apple Support

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I have the same issue with the orange dot at top right. However, I don't have a call recorder set up as I was just making a normal call. Is my calls being recorded?

No. As has been said dozens of times in this thread, an orange or red dot ONLY means that the MICROPHONE IS ON. It has no other meaning. It has nothing to do with recording.