Hi Community,
I had this same issue, and finally found my fix.
In Zoom, WebEx, etc.. webcam was in color and fine. In MS Teams it was Black & White, so I knew it was specific to some setting, not a defect.
I installed Skype for Business, as I noted that Webcam controls are much better.
Open up Skype for Business and if it tells you that TEAMS is the more current app, ignore that and continue to open Skype.
Navigate to the settings for Webcam
You can play with all of the complex settings in that window, or just click defaults, and then save.
These new settings, corrected whatever I had done in the past to make my Camera show as B&W in the Microsoft platform
Hope this helps.