Hi Stephen,
Welcome to Microsoft Community. I'm sorry to hear about the issue you're experiencing with your Surface Studio 2 camera. This problem could be due to a driver issue caused by the recent Windows update. Force a restart: Select Start > Power > Shut down and wait a moment for your Surface to shut down. Then press and hold the power button for 20 seconds. If you see the logo screen appear after a few seconds, continue to hold for the full 20 seconds until you see the logo screen again. Manually update Surface drivers and firmware: Download drivers and firmware for Surface - Microsoft Support
Run the Surface Diagnostic Toolkit: Fix common Surface problems using the Surface app and Surface Diagnostic Toolkit - Microsoft Support
If you're still having camera problems, try restoring or resetting your Surface. To find out how, see Restore or reset Surface for Windows.
If the problem persists, rolling back the update could confirm if it’s software-related. Let me know how it goes or if you need more detailed guidance!
Your Sincerely Hahn. W - MSFT | Microsoft Community Support Specialist