Hi Will,
Welcome to Microsoft Community.
It seems like you're facing an issue with setting up Windows Hello facial recognition, where the setup option is greyed out and you're receiving the message about a camera not being compatible with Windows Hello Face. Here are a few things you can check and try to resolve this:
- Start by running the automated camera troubleshooter in the Get Help app. Get Help automatically runs diagnostics and takes the correct steps to fix most camera issues. Open Get Help
- Select Start > Power > Shut down and wait a moment for your Surface to shut down. Then press and hold the power button for 20 seconds. If you see the logo screen appear after a few seconds, continue to hold for the full 20 seconds until you see the logo screen again. See Force a shut down and restart your Surface for more info.
- Remove and reinstall driver:
- Select Search on the taskbar, enter Device Manager, and select it from the results.
- Select the arrow next to Cameras to expand the list, and check to see if one of the following adapters is listed:
- Intel(R) TGL AVStream Camera
- Intel(R) AVStream Camera
- Double-click the camera, select the Driver tab, and then select Uninstall Device.
- Select Attempt to remove the driver for this device and then select Uninstall.
- Restart your Surface.
- Manually update Surface drivers and firmware: Download drivers and firmware for Surface - Microsoft Support
- As a last resort, If you've tried basic troubleshooting options, you may need to restore or reset your Surface. If the issue occurs after a reset, then the root cause is very likely hardware related. Restore or reset Surface for Windows - Microsoft Support
I hope this helps. If there is anything not clear, please do not hesitate to let me know.
Your Sincerely
Hahn. W - MSFT | Microsoft Community Support Specialist