Finally the camera arrived.
So at first I did see what you saw in the first post, even on full Windows.
I then installed Logi Options+ for this particular camera, updated firmware, went to Windows Update and installed Logitech USB driver that was listed there.
It's somehow important for Windows Update to tag the camera, or install necessary files.
So don't test this on an offline machine.
Then after the reboot got a notification from Windows that Hello is available.
Went to enable it on your non-working preset from the first post, and could not set it up, it gets stuck (but it does not look like Hello is not supported, it tells me to setup a password, and then tries to open face recognition setup but it cannot).
The needed component is 'Windows AI Machine Learning', keeping it, Hello Face setup started.
Basically make sure to run Windows Update, install any prompted drivers, reboot, don't remove 'Windows AI Machine Learning' for now, will check if possible to remove most of it, or it will be added to the Biometric support compatibility.
Let me know if that helps and if you have any more info.