Choose the microphone
Open the Microphone dropdown in General and choose your intended input device. If no input devices appear, check Windows microphone permissions, device connection, and the recording device's availability before retrying. Re-select your preferred input after changing headsets if necessary.
Hold to Record: enabled
In version 1.0.0 the enabled Hold to Record setting uses tap-to-toggle behavior: tap the hotkey to begin recording, release it while speaking, and tap again to stop. Follow the explanatory text shown beside the setting rather than inferring behavior from the short label.
Hold to Record: disabled
When the switch is disabled, press and hold the hotkey while speaking, then release to finish recording. Both Dictation and Assistant use the chosen behavior. Try a short test request before relying on it during a long message.
When recording works but output does not
Keep the destination focused for dictation, check your internet connection, and inspect the resulting interaction on Home. A working microphone does not confirm that processing succeeded or that the destination accepted text. In a protected app, test a normal Notepad field to narrow down an input permission problem.