I have the same problem and question. Except, in my case, I got no error message; having chosen to "record a separate audio file of each participant," whether to the cloud or to my computer, I got a combined video and audio file, and an audio-only file. Furthermore, that audio for those two files was exactly the same--That is, it's not as though one was higher quality for one speaker, the other, higher quality for the other speaker. Such a thing should be possible, because, with permission, Zoom could record locally for your guest, and then upload the locally made recording, with less compression and fewer live-streaming errors.