Wondered if there have been any solutions for this - I was on the phone with a HP operator today who patiently worked through their checklist with no solution. They wish to call back tomorrow and have me factory reset - which seems to not work so I am now reluctant to do.
Mine too is present on the device manager when in the down position - appears to work on the "Camera" app albeit showing the rear of the PC in darkness. Raising the camera sees it effectively unplugged; no longer detectable by windows and greyed out on the device manager. I've had it apart and the single switch in the camera unit appears to do nothing so I am confused as to how it detects the position of the camera.