I am having this issue as well. Did you ever find a resolution? Thank you.
No resolution yet, unfortunately. I'm just hoping that Microsoft fixes it. I'm under the impression that MS Teams, since Apr 2020, is now enforcing the use of AVX2 and is no longer supporting the older AVX hardware and that it why it no longer works. That's
my guess. I'm upset mostly because it was all working last March and now it isn't so it's not like the hardware can't do it, because it was doing it just fine. Grrr...
Its pretty clear that once Microsoft decided to add fancy backgrounds alongside blurring, they removed the feature from older machines. Most people just want blurring, so at least add that back for older machines. Microsoft have really antagonised people
for no reason at the worst time possible