Blurry/pixelated 720p camera on MacBook Air M1 2020 model

I've seen this posted multiple times on this forum and on Reddit forums. I don't see any answers to this, so here I am adding onto the pile so that Apple takes notice of this problem:

The 720p camera is so blurry and pixelated, quality so laughable in today's Zoom era! And yes, I've tested this in brightly lit areas, wiped the screen. My mid2012 MBP is 100x clearer than this.

I'm going to assume this is a software processing issue and not a hardware issue. But might be a little too hopeful. Thinking of returning this because of this unfortunate bug.

FIX THIS APPLE.