Electrum "use change address" option is not working as you can see in attached image
"....mJZ74bJM2PnHJsx7vTe" is my electrum wallet address and ",,,2r8ih6nXTX6HzW" is the address that I wanted to send btc (So, electrum has not used a proxy address)
and as you can see electrum has used same address I used for receiving btc for sending it too
In your screenshot i don't see any transaction where electrum could have used a change address to be honest...
you received an output of 0.0002
BTC that could be spent by *mJZ74bJM2PnHJsx7vTe
then you used this output as an input of a transaction that only created one output, namely to *2r8ih6nXTX6HzW
A change address works like this:
your wallet manages address A
Address A gets an output of 10 BTC from a certain transaction which could now be used as an input when you want to spend these funds
Address A uses this unspent output as an input to create a new transaction, sending 1 BTC to address B for goods or services and 8.99 BTC to change address C.
If you create a transaction whose output consists of the complete input (minus the fees) there is no need for a change address.