Hello, I can't see either what could be wrong but here are my settings for an identical setup
Trigger > Capture image list => off
Record > Include JPEGS on 'All clips' & timeline => off
I had a similar problem when I tried to encode my recordings to save space, to fix it I did Record > Video file format and compression > File and container format =
Blue Iris .dvr and also direct-to-disk video.
This might be the same issue. good luck