Windows Snipping Tool can record screen and product mp4 files, but these files are uncompressed. You need to run external tool to compress them. You can do it with ffmpeg + add "Compress MP4" Windows Explorer context menu item.
Install ffmpeg
Run winget install Gyan.FFmpeg command. It shall install ffmpeg
Run as administrator script
#Requires -RunAsAdministrator
$basePath = "Registry::HKEY_CLASSES_ROOT\SystemFileAssociations\.mp4\shell\CompressMP4"
New-Item -Path $basePath -Force | Out-Null
Set-ItemProperty -Path $basePath -Name "(Default)" -Value "Compress MP4"
$command = 'powershell -NoProfile -Command "$f = ''%1''; $out = $f -replace ''\.mp4$'', ''_compressed.mp4''; ffmpeg -i $f -c:v libx264 -crf 28 -preset medium -c:a aac -b:a 128k $out; pause"'
New-Item -Path "$basePath\command" -Force | Out-Null
Set-ItemProperty -Path "$basePath\command" -Name "(Default)" -Value $command
Write-Host "Added Compress MP4 context menu" -ForegroundColor Green
It shall create context menu item.
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