Continuing on this topic, I had the same issues as many with a Surface Pro 7 i5 with Windows 11.
The front camera white led stays on randomly and this disables any apps using the camera, from Window Hello to Camera, Google Meet, Zoom, etc...
I have been testing this solution successfully for a few hours and will report here if things change:
- Open Device Manager
- Right-click on the Intel(R) AVStream Camera/Properties
- My driver version is 42.18362.3.88.31

- Go to https://www.catalog.update.microsoft.com/Search.aspx?q=Intel(R)+AVStream+Camera
- Look for the same version as your current driver Download the .cab file

- Extract the content of the cab file: go inside the cab file, copy all the files to another folder
- Back to the Device Manager, Right-click on the Intel(R) AVStream Camera/update driver
- -> Browse my computer for drivers -> Let me pick from a list of available drivers on my computer

- Click on Have Disk

- Point to the directory where you've extracted the cab file, click OK.
- Restart your computer
My guess is that there is something corrupted in the Windows Update driver versus what you can download from the Microsoft Catalog website.
Hope this helps!