shaz84 Said:
"iMac 27 2020 Flickering webcam: [...]I was expecting the 2020 iMac to have an upgraded webcam - as it is supposed to be 1080p as opposed to 720p, but its not really very useable.[...]"
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Some Other Thoughts:
If you have any USB devices plugged into your Mac, then unplug them. They would most certainly get getting in the way here.
Go Here: Turn Bluetooth On or Off on Mac - Apple Support
Perhaps you've unknowingly installed an update, and all needs to reset. For, restart the Mac. See if it then works.
Sometimes when changes are made to the system(i.e. updates), system configurations (i.e. for iSight Camera) become manipulated, technically. So, reset the SMC and NVRAM.
When you boot into Safe Mode, items load by default, with all settings and caches set aside. So, hold down the shift key upon boot. See what happens then.
- Create a New Administrator:
See if creating and logging in as a new administrator does the trick. There may be something misconfigured in your current user - something that is getting in the way. Go to: System Preferences > Users & Groups > Unlock > Click: "+" > Create the new administrator
See if something is listed as "(Not Responding)". Go to: Apple Menu > Force Quit...> Select anything ending with "(Not Responding)". Also, while in Force Quit... be sure to select Finder, and Click "Relaunch"
As a last resort - Reinstall the macOs:
1. Backup the Mac:
If not, then is probably the macOS itself. If that is the case, then you would backup your macOS with Time Machine Backup. Be sure to use an external Hard Drive that is 1.5 times the Storage Capacity of your entire internal hard drive.
2. Next, Reinstall the macOS: Use the third option: Hold Down [command + R] upon boot. Nothing would be lost; it's just that moved or corrupt files, will be relocated or replaced, respectively. Such items would be drivers for the iSight Camera.