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Managed to resolve both!!!
To remove the camera list, go to /Library/CoreMediaIO/Plug-Ins/DAL/ and remove the unused plugin.
To resolve the video transmission:
- log out of the Teams desktop
- log in to the web version of Teams and start a meeting with the camera ON.
- log back into the desktop version Teams
- transfer the ongoing meeting to the desktop app
- your video should be transmitting now.