A common issue with older network camera firmware is that the sensitivity setting would not function correctly. If the network camera is not detecting motion even though the detect settings are set properly, then updating the firmware on the camera will usually correct the issue.
After updating the network camera to the latest firmware, set the sensitivity settings on the camera itself rather than the video recorder (if one is being used) and leave the video recorder sensitivity setting on default (3).
In the network IP camera’s Motion Event > Region menu, the Sensitivity setting modifies motion sensitivity (the degree of motion the camera detects) and the Threshold setting indicates how much motion activity will trigger the event (recording, snapshot, alarm, etc.)