diff --git a/BetterCapture.xcodeproj/xcuserdata/jsattler.xcuserdatad/xcschemes/xcschememanagement.plist b/BetterCapture.xcodeproj/xcuserdata/jsattler.xcuserdatad/xcschemes/xcschememanagement.plist
deleted file mode 100644
index ccfb225..0000000
--- a/BetterCapture.xcodeproj/xcuserdata/jsattler.xcuserdatad/xcschemes/xcschememanagement.plist
+++ /dev/null
@@ -1,14 +0,0 @@
-<?xml version="1.0" encoding="UTF-8"?>
-<!DOCTYPE plist PUBLIC "-//Apple//DTD PLIST 1.0//EN" "http://www.apple.com/DTDs/PropertyList-1.0.dtd">
-<plist version="1.0">
-<dict>
-	<key>SchemeUserState</key>
-	<dict>
-		<key>BetterCapture.xcscheme_^#shared#^_</key>
-		<dict>
-			<key>orderHint</key>
-			<integer>0</integer>
-		</dict>
-	</dict>
-</dict>
-</plist>
diff --git a/BetterCapture/ViewModel/RecorderViewModel.swift b/BetterCapture/ViewModel/RecorderViewModel.swift
index 5e51b60..be83a2c 100644
--- a/BetterCapture/ViewModel/RecorderViewModel.swift
+++ b/BetterCapture/ViewModel/RecorderViewModel.swift
@@ -265,17 +265,29 @@ extension RecorderViewModel: CaptureEngineDelegate {
     }
 
     func captureEngine(_ engine: CaptureEngine, didStopWithError error: Error?) {
-        if let error {
+        // Check if user clicked "Stop Sharing" in the menu bar
+        let isUserStopped = (error as? SCStreamError)?.code == .userStopped
+
+        if let error, !isUserStopped {
             lastError = error
             logger.error("Capture stopped with error: \(error.localizedDescription)")
         }
 
         // Clean up if we were recording
         if isRecording {
-            stopTimer()
-            assetWriter.cancel()
-            state = .idle
-            notificationService.sendRecordingStoppedNotification(error: error)
+            if isUserStopped {
+                // User clicked "Stop Sharing" - gracefully save the recording
+                logger.info("User stopped sharing via system UI, saving recording...")
+                Task {
+                    await stopRecording()
+                }
+            } else {
+                // Unexpected error - cancel the recording
+                stopTimer()
+                assetWriter.cancel()
+                state = .idle
+                notificationService.sendRecordingStoppedNotification(error: error)
+            }
         }
     }