Interesting. In my case, it does seem to record voice text when the small ‘microphone X’ icon is present. However, the small ‘microphone X’ icon doesn’t appear right away after tapping the microphone icon—you have to start talking, then the ‘microphone X’ icon appears, then whatever you say after that gets translated from voice to text.
Kind of bizarre setup, you’d expect to tap the microphone and start talking right away straight into talk-to-text, but you have to say random stuff first to get to the recording part.
I’m using the newest iPhone Pro Max so I’d be surprised if it was a lag. Maybe there is a setting we can adjust to begin dictation automatically after microphone icon is tapped and remove the lag.