Using Microsoft Teams on macOS, including installation, features, and compatibility
Exact the same issue. Mine also would be sepia tone 50% of the time.
As said I’ve tested on my 16” M1 Max MacBook Pro and the built-in camera is fine. External Logitech USB camera is also OK
Have a couple of plain 13” M1 MacBook Pro machines and also a 14” M1 Pro MacBook, so will also test with those machines.