No, it definitely records the shared screen or application of everyone who shares in a session, because where is the point otherwise ...
I actually just verified this with two of my systems.
The only special thing is about webcam recording, as you already found out.
Webcams are only in the cloud recording.
But screenshare and audio should be in both, local and cloud recording.
So, what I could imagine is that the other person was not sharing their screen, but a pre-recorded video via Video sharing?
If the other party was definitely using screen or application sharing, I would suggest reaching out to our support with the problem and ask them to escalate to our engineering (you may quote me).
This sounds like something we need to look into.
They would need the session ID and time, and if you can share it, also the failed recording.
And if its feasible, getting the log files form both systems (organizer & presenter) would be perfect
-> https://support.goto.com/connect/help/how-do-i-collect-logs
