Option 2: Privacy (call recorders come to mind - unrelated: does anyone know of a working call recorder?)
And of course the software ecosystem is so fragmented, and if you do want to find anything out, you have to sift through mountains of misinformation.
Only inbound calls, not outbound, and that's by design - it's to ensure both parties consent (since there's no way for Google to know whether the call falls under one-party or two-party consent laws).
It's not actually foolproof if you sit down and think about the edge cases, but that's the rationale behind it. It's a decision driven by the legal team, not the product or engineering ones.
Where would this meaningless feature-cripling make sense?
For starters, twelve states in the US, including California: https://en.wikipedia.org/wiki/Telephone_recording_laws#Unite...
And telecom companies (Google acting in the role of a telecom company in this case) have certain responsibilities and liabilities if they facilitate illegal recordings.
How?
It's a frustrating mess, all the more frustrating given that the limitation seems to exist only to prevent ripping of copyrighted audio, regardless of how beneficial the legitimate uses are.
Why are only OEM-blessed apps allowed to capture system audio output, when any app can already request permission to screen capture?