after many days of banging my head against a wall I found a fix online... I wish I remembered where so they could get the credit.
While logged in with admin permissions:
plug in the webcam, you'll see the speakers disable and you have no sound
open services 'as administrator'
go to windows audio and double click it to open
go to the login tab
switch it to log on as Local System account radio button at the top, hit apply
restart the windows audio service
now you have the right icon but still no sound
go to Windows Settings > Sound
scroll down to input devices, find your webcam and select it
scroll to the sound enhancements section and turn it off
close the settings window
go back to services
open the windows audio service again
go to the login tab
select This account
click browse
click advanced at the bottom
click find now on the right
select the LOCAL SERVICE account, click ok
The password fields need to be blank.. delete the ******** entries
click apply
restart the windows audio service
Sound is back and working
This was all done with a Logitech C920 webcam.
So far this change has stayed in place with no issues.. I haven't tested to see what happens if I connect a different type of webcam or if a future Windows update will break it again.
Very hard to find a way to handle this through gpo... if anybody has insight on how to implement that I'd be interested.