how to hide touch indicators while screen recording on iPad Pro

I had the same issue. Found this from the user manual on Endless Paper’s website.

Touch hotspots

The "Touch hotspots" is a feature represented by small gray dots whenever and wherever you touch your screen while screenrecording. It is very useful to point elements of your canvas when making a presentation or just to help children visualize what they are doing on screen.

If you wish to record your screen without the two dots, deactivate the "Touch hotspots while recording" button located at the bottom of the Option Tab in the setting popover.

Your question appears to be a carbon-copy of this related posting:

show gestures when screenrecording - Apple Community

Whether or not the absence of touch-point gestures being missing from Screen Recordings is an intentional change to iPadOS functionality is intended - or not - is unknown.

You would be best advised to:

a) Seek assistance directly from Apple Support.

You can contact the Support Team using the Support link at top-right or bottom-left of this page. Alternatively, you can initiate and manage your support cases from Apple devices using the excellent Apple Support App. If not already installed, the App can be downloaded from the App Store:

https://apps.apple.com/app/apple-support/id1130498044

b) Submit both a Bug Report and a Feature Request via Apple Product Feedback Portal

For iPad and iPadOS:

Feedback - iPad - Apple

When submitting a Bug Report, ensure that you include your iPad model and the currently installed version of iPadOS within the body of the report. Don’t rely upon the model/version pick-list as this is often several versions behind.