Okay - the solution to trick my camera into working - outlined a few posts above - worked perfectly for a few days, then stopped working again. Repeating the process by creating yet another user account seems to have tricked it into working again, but I have no faith this will be a permanent solution now 😟
I'm confused by this comment though:
"The standard camera on my MacBook Pro (Retina, Mid 2012) (2.6 GHz Intel Core i7) works with Facetime, but the EXTERNAL camera still does not work for FaceTime since I upgraded to 10.10.1. The external camera does however work for all other services such Photobooth, and Skype - so it's clearly a bug."
Unless I'm missing something, this thread is about issues with the INTERNAL camera on Macbook Airs (see thread title). I think we might be talking about different issues here, so wanted to clarify - when you say "external" camera - is this one you are connecting via USB?