Thunderbolt Display: audio, camera, etc. not working (USB-C adapter)
After one year in ****, fighting with all USB peripherals on a Thunderbolt display not recognized, and after having read all suggestions around (reset monitor, SMC, NVRAM, etc.), I finally found the solution: open the Bluetooth menu with SHIFT and ALT pressed, go to the "Debug" submenu and choose "Reset the Bluetooth Module".
I've seen several times this problem mentioned (e.g., Thunderbolt Display: audio, camera, etc. not working (USB-C adapter)), but after dozens of release Apple regularly failed to solve the issue. Considering the cost of a MacBook Pro and the ludicrous price of the USB-C-to-Thunderbolt adapter, it is really a shame.
MacBook Pro (15-inch, Late 2016), macOS Sierra (10.12.4)