According to a discussion on one of Google's Product Forums the Pixel 2 microphone does not work in some critical scenarios which include while the user is on a call or when the Google Assistant is functioning.
There are some users who have claimed that changing the settings especially turning the Ambient Display off and on again does fix the issue. I have had the same exact symptoms as everyone here so it may be for us all. Though this is a small issue, the biggest blow to Google comes in the form of Camera's video recording capabilities. Blowing into the speaker like you would an old NES cartridge. Doing this made my microphone work again and it continues to work when it goes out.
On the flip side, if the microphone itself is damaged, blowing and blowing into it will do nothing but add moisture - something you definitely don't want to do.
The cause for this is unknown, but on some devices, users are reporting that the microphone just stops working, seemingly due to some hardware issue.
The Google Pixel2 XL users also reported that their units are having burn-in issues with the new P-OLED display and other devices are making clicking and high pitch frequency sounds. Until then, blowing into the speaker is probably your best bet.
Some users have pointed that the screen flashing on the Pixel 2 XL doesn't happen every time but does occur frequently. The display starts flashing when locking or unlocking the device and when the phone activates the Always On mode. One user has posted a video, which shows the smartphone brightly flashes few second before it wakes up.
I don't remember if that has happened with any other phone I have ever used even after months and years of day-to-day usage.
Google has acknowledged the issue and is offering RMAs (refunds or replacements) to customers facing the problem, 9to5Google reports.
Google Pixel 2 XL has been going through some problems since it has been released and the latest one being the slow charging of the device.
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