@PeteBerkhout ...
I can see how this would be frustrating. And, yes, 50 MB (not really sure why it shows 52.4 MB ... at least for me) is not a lot of space. The challenge I see with trying to upload a video file to group "Files" is that you're not really uploading that video to a media server so that video playback is better. Students would just be uploading their recording to "Files" as a normal file. However, what if students were to create a blank page in the group area, and then use the media upload tool to upload their recording? Would that work for everyone's needs?
How do I upload and embed a media file from my com... - Instructure Community (canvaslms.com)
Or, has your school purchased Canvas Studio? (You'd see a "Studio" icon on the far left-hand side global navigation menu.) Your students could use Studio to upload the recording and then embed that Studio item in a page within the Group. This wouldn't use any of the 50 MB of file storage in the group "Files" area.
And, of course, there's always the YouTube option...where students could make the video "unlisted"...so that only people with the link could view it ... so it wasn't "public" for all to see.
Here's hoping that one of these options might be workable for you and your students. Keep Community members posted...thanks!