Hi! Your laptop camera works in the Camera app, so the more likely problem is that Windows Hello is failing specifically on the Hello/IR path, not on the normal webcam path.
Please go to Settings > Accounts > Sign-in options > Facial recognition (Windows Hello) and first use Improve recognition; if that still says it cannot start the camera, choose Remove and set it up again while the monitor is disconnected. Then open Device Manager > Cameras, identify the built-in laptop camera and any IR/Hello camera entries, and update them, then check Windows Update > Advanced options > Optional updates for camera/biometric drivers.
If needed, uninstall the laptop camera device in Device Manager and restart so Windows reinstalls it.