I'm using Macbook Pro 2017 Touchbar 4 thunderbolts and got this same issue for over a month.
The camera error thing happens even when I was at Catalina OS - then I updated to Big Sur 11.4 and it's still the same. This could not related to the hardware issue, because it was fine last month. I tried all solutions (reset SMC, PR, upgrade software, check Privacy Setting, Screentime, etc. - there couldn't be anything else).
Also, another thing I found out today, even my external Logitech C930e did not work anymore on Big Sur 11.4. What a coincidence? Tried to upgrade the software from Logitech and many things but didn't work.
And you know what? I uninstall Zoom.us app and now at least the external camera is working. Thank God for that. Don't know what happened but the old Zoom version (since last year) might cause the issue with the Logitech camera.
It's sad that the built-in camera is still not working even after installing Zoom. But it's a good point to see there are some obvious problems with Big Sur and camera connection (there's another topic about Thunderbold-USB hub connection error as well). Can't wait to see how they are gonna fix this because this topic is over 6 months and nearly thousand of users reported it, it could not just be a hardware problem.