If the phone doesn’t work after that, turn it off. If the orange dot still shows up when you turn it back on, then you should start to worry.
Although there are some issues, isn’t it better to have a visual cue when an app on your phone uses the camera or microphone rather than having no indication at all?
To be clear, if you see an orange dot at the top of your phone screen, it means that one of the apps on your iPhone is currently using the microphone, which implies it is recording your voice.
The presence of a green dot in the same location on the screen indicates that the app is using the phone’s camera instead of the microphone.