The first issue sounds like motion detection is not enabled. That would explain why tagging is not working and no notifications are being sent. You could try disabling motion detection and tagging and re-enabling them if you haven’t already, or power cycle the camera and see if it starts working.
The second issue is likely due to the removal of the hardware decoder in the Android version of the Wyze app. You can try rolling back to the older version of the app and see if that resolves the issue with lag:
You may also get more responsiveness by switching from HD quality to SD or 360p. I’m using mine in 360p mode since I haven’t rolled back my app.