Hello budgetbiker7,
Thanks for asking about the voice recording feature. You are actually talking about different things, but we're happy to go through this with you.
1. In Messages, to see the option, it first has to be an iMessage: Send and receive messages on iPhone - Apple Support
"Send a recorded audio message
Instead of writing a text message, you can quickly record an audio message that can be played right in the Messages conversation.
- Audio recording is an iMessage app. In a Messages conversation, tap
to show the app icons below the text field, tap 
, then do one of the following: - To record and review before sending: Tap
to record, then tap it again to stop recording. Tap 
to review, then tap 
to send the recording or 
to cancel. - To record a message and send it immediately: Hold .
- Note: Your audio message disappears from your conversation two minutes after you send it, unless you tap Keep. Recipients can still play your recording. To always keep audio messages, go to Settings
> Messages > Expire (below Audio Messages), then tap Never.
- To make an audio or video call instead of sending a message, you can switch to FaceTime
. In a Messages conversation, tap 
."
2. For the Dictation Setting, and missing mic you have circled, we have a few things to check.
3. First, it may be due to a third-party keyboard. Settings > General > Keyboard > and check if there are nay third-party keyboards there. If there are, delete them, and restart.
Are you able to find Dictation back in Settings > Keyboard?
4. If not, does your microphone work properly? People have no issue hearing you on calls?
5. Do you have Screen Time enabled? Try turning it off and restarting, see if it was blocked by parental controls. Settings > Screen Time > content & Privacy Restrictions > Allowed Apps > Siri & Dictation.
6. Is your Apple ID set to the correct country, the country you are actually in? And then, are you in a supported country?
Change your Apple ID country or region - Apple Support
7. "Note: Dictation may not be available in all languages or in all countries or regions, and features may vary. To see whether dictation is supported in your language and region, go to the iOS and iPadOS Feature Availability website."
Thanks.
