Hi Lilybiri:
It seems that there is an object on my master slide that is a semi-transparent shape which was in the foreground and causing the slides to look faded. To fix the issue, I created a new master slide with no objects on it and unchecked the "Show Main Master Slide Objects" and "Use Master Slide Background" boxes, then unchecked the "Project Background" box. I applied this new master slide to my screen recordings and everything looks as expected.
Thank you for your quick response. Maybe this post will help others as well.