A family of Microsoft word processing software products for creating web, email, and print documents.
Could you please confirm whether the issue also occurs in a completely new blank document, rather than only in documents containing existing tracked changes? For a quick test, create a new document, enable Review > Track Changes, type a sentence, and then delete part of it. Next, open Review > Reviewing Pane and check whether Word records the insertion and deletion.
One additional setting worth checking is Review > Show Markup > Balloons > Show All Revisions Inline. Microsoft documents that deletions displayed in balloons may not appear as strikethroughs within the document itself. You can also open Word > Preferences > Track Changes and review how insertions and deletions are configured to appear. If the changes are being recorded but the expected formatting is missing, please share a screenshot showing the Review tab and a sample revision, without including confidential document contents. Keep in mind that Microsoft does not guarantee tracked changes will always appear in red, since colors can be assigned by author.