Inside camera works with Facetime only and no other applications
macOs Monterey and a MacBook Air M1, 2020
I tried QuickTime player:
new video recording, select FaceTime camera HD from control menu, the camera light lits but the video window remains black.
Same behavior running iMovie: import new media.
In Preferences:
Screen time is not activated.
Security&Privacy :
iMovie is allowed to use the camera, QuickTime Player not shown in the app list.
Bernard