Thanks for the ongoing effort to help me solve this.
I created a separate local admin account. Performed a clean boot and signed into that account. It had the same problem.
BIOS is current (I had updated a couple of months ago and there's been no change from the motherboard manufacturer since January of this year).
I also tried moving the camera to another computer also updated to 20H2 -- it worked there. That computer is an HP laptop that also has a built-in Hello-capable webcam, so that could prevent that from being a fair test. But that does seem to suggest that the problem on my main desktop is something in my Windows configuration that is causing the problem. Still, strange that it worked fine on this same computer for the past couple of years until 20H2. I have not noticed anything else that broke with the 20H2 upgrade.
I will now try the In Place Upgrade. I'll post back after I've had a chance to try that. Not sure when that will be at this point. Other work to do and it's Halloween weekend.