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Unfortunately, it's likely due to the operating system or hardware you're using – since they don't meet the system requirements for Lens Studio.
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Operating System: Windows 10 (64 bit); MacOS 10.11+
Hardware: Minimum of Intel Core i3 2.5Ghz or AMD Phenom II 2.6Ghz with 4 GB RAM; Intel HD Graphics 4000 / Nvidia GeForce 710 / AMD Radeon HD 6450 or better; screen resolution of 1280x768 or higher
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I'm having the same issue with Catalina 10.15.6, Microsoft Teams 1.3.00.18164 ... it's been working fine until just the last week and a half. I had updated all three (Snap Camera, MacOS, and Teams) prior to having the issue of Snap Camera not appearing as a camera option in Teams, so I have no way of knowing which update was the culprit.
@... Found the solution here:
https://techcommunity.microsoft.com/t5/microsoft-teams/7-17-2020-latest-teams-update-breaks-virtual-cameras-microsoft/m-p/1527271
Microsoft Support seems to be no help at all. I saw many posts on the Microsoft Community forums asking how to rollback Office products to previous versions when something breaks, but Microsoft Reps only suggest completely irrelevant pass-the-buck solutions (e.g., "Here's a link to Apple's camera support page with instructions on how to turn your camera on"), or they just say to use the web version of Teams (Snap Camera worked on web Teams for me, but the web version caused other problems for my calls), or they just don't respond at all.
I was able to find a download for the previous version of Teams (1.3.00.15561) on a Reddit post from about a month ago:
https://www.reddit.com/r/MicrosoftTeams/comments/h04f8g/mac_client_not_updating/
I used App Cleaner to completely remove Teams and all its supporting library files, then turned off my computer's wifi while I uninstalled the older version (just in case it tried to auto-update during installation). I also used spotlight (CMD + spacebar) to search for the Microsoft AutoUpdate app and uncheck the auto-update option. When I opened Teams, Snap Camera is showing up in the devices again. 👍
For those of us that cannot downgrade our teams clients this suggestion doesn't work. Hopefully Snap Camera can find out what microsoft did with their teams client that caused this to stop working.
Confirmed with coworkers and tried several other computers and snap camera is now just a black screen on all of them.
I found an official answer for this problem. If you want to use the Snap Camera, than you should use Teams in a web browser until the desktop client will have official support for virtual cameras :)
https://docs.microsoft.com/en-us/microsoftteams/troubleshoot/teams-on-mac/virtual-camera-doesnt-work-macos
Please vote on this UserVoice suggestion to encourage Microsoft to fix this: Virtual camera support broken in version 1.3.00.18164 – Microsoft Teams UserVoice
Here is the workaround to this entire issue. Worked perfectly for me :)
https://answers.microsoft.com/en-us/msteams/forum/all/microsoft-teams-mac-os-client-is-not-recognizing/d9e863be-d9a4-4d03-a4b8-1b5c7df58828?auth=1&page=10