The issue arises when a user tries to use an external cam with the Windows Hello but fails to do so but the camera works fine in other applications like Microsoft Teams, etc. The issue mainly arises after a Windows update. The issue is not limited to a particular manufacturer of camera or system. Before moving on with the solutions, perform a system reboot, and make sure your camera is Windows Hello compatible. Moreover, check if the external camera works in other applications like Skype, etc. Last but not least, make sure your camera drivers and Windows version are updated to the latest build.
Solution 1: Temporarily Detach Other Devices from Your System
You may fail to use your external camera with the Windows Hello if any of the attached system devices are interfering with the camera operation. In this case, detaching the other devices from your system (temporarily) and then using the external camera with Windows Hello may solve the problem.
Solution 2: Disable the Internal Camera of Your System
Windows prefers the internal camera of your system when using the face sign-in due to security concerns. The same could trigger the issue at hand. In this context, disabling the internal camera may let you use Windows Hello face recognition on the external camera (not an ideal solution for many users).
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