I build software and can confirm this.

This is pretty run-of-the-mill analytics and user session recording. There’s nothing surprising here.

Usually it’s not actual screen recording but rather user action diff recording (Which effectively acts like screen recording except that it only records things that changed so that the recording is much cheaper to store)

This is extremely effective for tracking down bugs, solving user support issues with software, or watching session recordings to figure out if users are using the software in unexpected ways.