Replicated with Cuphead, but also works with Megaman Legacy as well. This issue does not happen with Elden Ring.
Basically, for Cuphead, I will need to pause the game when I load into the boss fight to get the capture feed to work property. For those not familiar the words 'WALLOP' flash, and the battle begins. Now, I have a burned image of the words Wallop, like a cheap plasma TV used to have. I beat the boss, the game loads the score sheet, and doesn't capture. The game takes me to the map, and I have to hit the pause button again to show the video footage.
I've attached the most severe distortion. Any help would be appreciated.