No, it was set to record everything as well as notify with motion.

When I go to review, it has green over everything its recorded as well as notifying motion by highlighting the area in yellow.

Regardless, it should have recording everything.

The system also lags and freeze when I try to navigate around. Maybe this is common for all DVR/NVR?

I'm not sure but its almost useless if it skips over the vital information needed.