I have all live meetings functionality turned on in Teams, including cloud recordings as of yesterday and when I've gone to test again, I'm seeing that when I schedule a new live meeting, I don't get the option of whether it's a Teams Live Meeting I'm wanting to hold or one using an external encoder. It only gives me the option to use with an external encoder and I'm not sure why.
Thanks for your message. In this particular case, I have an E3 license with Teams and Stream enabled for us.
I have been speaking to someone at MS that mentioned some weird behaviour has been seen when an acceptable use policy is setup in Streams (which we do have) so may need to do some testing around this and remove it to see whether it changes anything.