The Windows 10 Anniversary Update, aka version 1607, has been found to  leave many webcams inoperable. The update prevents the use of webcams in  applications such as Skype and Open Broadcaster Software (OBS), along  with all manner of custom CCTV programs. Extremely popular hardware,  such as Logitech's C920 and C930e cameras, in conjunction even with  Microsoft's own Skype, will fail to properly broadcast video. 

 People first noticed the issue earlier this month. But it's only within the last couple of days that the exact cause became clear via a post by Brad Sams on thurott.com. 

 Microsoft has said that a fix is in development, but has not yet said when that fix will be distributed. 

 The Anniversary Update changes some aspects of how Windows handles  cameras, and the issue appears to affect both USB webcams and  network-connected IP devices. Traditionally in Windows, only one program  has been permitted to access a webcam at a time. If you're using the  camera in Skype, for example, other applications such as OBS or the  Windows Hello facial recognition cannot use the camera. 

 Windows 10 1607 includes a new component to address this. A system  service called the Windows Camera Frame Server connects to the data  streams from the webcams. Regular applications connect not to the camera  hardware directly, but to this new frame server component. The frame  server supports multiple connections from applications and shares the  video data from the camera to every connected app. This puts an end to  the "exclusive" use of devices, and it's arguably a change that Windows  should have made long ago. Third-party software for sharing cameras  between applications exists, but the operating system should support  this scenario natively, as it already does for audio devices. 

 Microsoft explains that the design of the frame server is the issue. 

You can read the full article here.