I almost always have at the very least 4 apps open from Steam at all times. Apps like ShareX, OBS Studio, etc.

Then I normally also have an idle game or two open.

These above things are always running.

But now when I start an actual game. It doesn't record the game that I am actually playing. It keeps recording one of the background apps/games.

The Steam game Recording should be recording the active game. Not whatever I opened first or what is in the background.