Additional settings-related features and issues within Microsoft Teams Free
Hello Jim Graves,
Since your camera's working fine outside of Teams and nothing else has it locked, it sounds like something's specifically blocking Teams from getting to it rather than a hardware problem.
There's one setting that's easy to miss and can cause exactly this greyed-out dropdown, even when the camera itself is totally fine: head into Settings, then Bluetooth & devices, then Cameras, select your camera, open Advanced camera options, and turn on "Allow multiple apps to use the camera at the same time." Then restart Teams and take another look at the Devices dropdown.
If that doesn't do it, it's also worth double-checking Windows Settings under Privacy & security, then Camera, just to make sure Camera access, Let apps access your camera, and Let desktop apps access your camera are all switched on and that Teams specifically is allowed there.
One more thing that'd help narrow this down: are you running the Teams desktop app, or are you using Teams through a browser? The greyed-out dropdown tends to show up for slightly different reasons depending on which one you're on, so knowing that'll help figure out the next step if the fix above doesn't clear it up.