Unsure if it has been brought up before or is already a thing that happens (I have not noticed one), but I think this feature could benefit from a notification stating there is an error with steam recording.

In the overlay it currently displays a !!, or something whenever there is a problem ie. Low Storage. I had mine directed to a drive that I unplugged and forgot to plug back in, so it didn't kick on the Steam Recording feature when I started gaming, unfortunately.

I think something simple like a little alert when starting a game that steam recording is currently paused.