No, only the camera and your computer screen and/or presentation can be recorded.
Yes, it is possible to pause live recording. Alternatively, you can also edit the video and remove the confidential section before releasing the video for viewing.
A webcam has been installed on top of the monitor in the teaching spaces. In order to be clearly seen and heard on the Panopto recording you should stand directly behind the monitor. You can move the monitor up or down or tilt the camera to create the best viewing angle.