Had the same problem as GraniteStateColin, running with windows version 20H2 with webcam Logitech BRIO 4K Stream edition.
The error message was slightly different in Windows Hello:
Sorry something went wrong. Camera cannot be turned on
Same diagnostic info, red light flashes on camera for several seconds with no picture when trying to setup face recognition.
I've only just purchased this camera, today, and had never had it installed in previous windows versions.
Tried all the suggestions in this post, nothing worked.
I did find something that worked!
used - Option 2: Try to install compatible firmware updates for your BRIO Camera. Check this link:
ftp://ftp.logitech.com/pub/techsupport/cameras/...
Downloaded LogiBrioStreamFWUpdate_1.3.14.exe
Detected my camera and updated firmware from 1.1 to 1.3.
Camera now works perfectly with windows hello and I did'nt need to reboot.