Red dot on dynamic island

Learn the meaning of the iPhone status icons - Apple Support

The red dot is actually an orange dot, meaning an application is using your microphone.

A red dot where indicated means you are making a screen recording.

Hi alexeck1,

Thank you for participating in the Apple Support Communities. We understand you're seeing a red dot on your Dynamic Island and you have security concerns. Restarting was a good step and we're glad to hear that resolved the issue. If you have security concerns, we recommend making sure you're updated to the latest version of iOS as this will provide your iPhone with the best security. This article has the steps to update if needed: Update your iPhone or iPad - Apple Support.

"Update your iPhone or iPad wirelessly

1. Back up your device using iCloud or your computer.
2. Plug your device into power and connect to the internet with Wi-Fi.
3. Go to Settings > General, then tap Software Update.
4. If you see more than one software update option available, choose the one that you want to install.
5. Tap Install Now. If you see Download and Install instead, tap it to download the update, enter your passcode, then tap Install Now. If you don't know your passcode, learn what to do."

If the issue returns, we recommend contacting Apple Support for further assistance here: Get Support.

We hope this helps.

Take care.

Why did you answer and without telling us what it means???

No it’s as pictured. A small red ditch with a red circle around it.