UpdateRecordingStatus fails with 8506 API call not allowed for non-Compliance Recording call

My call to update the recording Status fails with:

exception: Code: 8506
Message: API call not allowed for non-Compliance Recording call

Maybe a bit more backround. I have a bot that joins a meeting and should record the meeting, but to be allowed to record the meeting and persist the media it needs to set the recording status. So I set up a recording Policy that is granted to the application instance itself. I did this because I want my users to paste a link to their meetings into a Form and later I can process the meeting recording for them, but the users shouldn't always be recorded, just some meetings of some users. And the Users could also give me additional information about the meeting, which I use in the processing step of the recording and during the meeting.

So what am I doing wrong that I can't set recording status. And what to do to fix it.

I think maybe @muradhaider5786 you have a similar setup.
Or @ssulzer can you please briefly explain what is wrong with it or do you know someone who can help me with it?

Thanks in advance!
Fabian

The payload mentions no repository files or tests. Start at the UpdateRecordingStatus API call and the 8506 response, then review the recording policy and application-instance setup described in the issue; done means documenting the supported configuration or the prerequisite for a successful status update.