FWIW, I am also hearing 'rotzot' with an 'o', and not 'ratzot'.

is the pronouciation off? I understand: ken, anachnu rOtzot baboker. Not rAtzot baboker. Isnt the verb: ratzot rather than rotzot?

רָצוֹת ratzot Present tense / participle, feminine, plural: we / you f. pl. / they f. run

according to:

https://www.pealim.com/dict/11-larutz/

means this sentence that they are really running in the morning or does it mean "the morning starts"

Or does it mean we run in the mornings?