They absolutely are recording audio. It has a microphone. It records voices without consent. They may not retain the recordings for longer than necessary to transcribe the audio, but these devices sure as heck are making those recordings.
They are clearly attempting to circumvent the laws that prohibit this kind of activity, and their strategy likely involves fighting it in court long enough to pay off the investors or ultimately change case law. Sound familiar? It’s a common SV strategy that I personally think is grossly unethical.