HP elitebook x360 camera with a black circle around the image

[TMM_1]

I've purchased and setup a brand new HP elitebook X360 G7 for a customer a few days ago, unfortunately when using the camera from any application we get a black circle around the image.  Is this a hardware fault?

We have tried using just the local camera application and we still have the same issue, tried Zoom and Cisco webEx. 
I have tried a different user profile, checked drivers for latest update and tried rolling back drivers with the same issue. 

Please note I've used this image below from another post, they are having the same issue. 
(link to image as an example, can't paste image in) 
Can anyone help? 

[Dragon-Fur]

@TMM_1 

It is not normal.

It almost looks like packing fuzz stuck around the camera lens.

If that is the case, using a magnifying glass and peering closely at the camera lens might show the culprit in more detail.

What else?

Contact HP Support.

Camera should work and the view should not include black fuzzy bits.

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