Comment by tytso

When you enabled the Live Caption (similarly to how folks told you to disable it --- on my phone it was turned off by default) the following informational screen should have been displayed:

"Live Caption detects speech on your device and automatically generates captions.

When speech is captioned, this feature uses additional battery. All audio and captions are processed locally and never leave the device. Currently available in English only."

So note that Google does not get a copy of the audio stream. It stays local to your device only. I don't know about you, but seems like a really handy feature to me, especially for those who might have hearing difficulties.