Red dot 🔴 when my phone rings

As your iPhone updates on IOS 14, you can now see the lights at the side of speaker orange and green.

this shows you the status of your iPhone, that which hardware is in working,

orange light shows:- your iPhone is using your microphone

green light show:- your camera or camera and microphone is being used.

this is the indication lights which you can see now.

for more details go through this link,:-https://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&ved=2ahUKEwjL5e-m2bbvAhXKdn0KHXoEAFUQFjAMegQIAhAD&url=https%3A%2F%2Fsupport.apple.com%2Fen-in%2FHT211876&usg=AOvVaw1mKlorbLp10Gfiy8wPwuHc

hope this might help.

It's your microphone turning on so you can talk to the person who is calling. Nothing is wrong.

if the microphone is on, it does not mean something is being recorded.

What are you doing on your phone when you see this dot?