Hi @Jrodgers
It is true that cloud recordings cannot be initiated from within a breakout room, only local recordings can be done from within breakout rooms.
As for the co-hosts and recording locally, you don't need to increase your account or capacity, as you can just allow each of them to record in the meeting, move them into their breakout room, and they can begin to record. Just make sure they are each joined through the desktop client, as they cannot locally record from the web client or mobile app.
Hope that helps and please make sure to mark the solution as accepted if this information is what you needed.