MacBook Pro not recognizing Thunderbolt display camera

I am using an old Thunderbolt extended display with my 2021 Macbook Pro & Tahoe OS. For some reason the Macbook does not recognize the camera on the Thunderbolt as an available extended camera when I try Facetime or Photobooth. Using a Thunderbolt adapter cable to connect to the Macbook USB port.

I tried a Thunderbolt firmware update but the update messaged that it was not required.