Webcam quality bad on Teams desktop but good on Team web

I struggled with this for many days. My camera app showed perfect resolution, however, my MS Teams video had the worst resolution. It was so unprofessional in meetings. Here's the fix:

Make sure Teams (or any other application) is not accessing the camera.

Go to your 'Settings' and search for 'Manage Cameras'.

Under that, select your camera in the 'Connected Cameras' section. On your camera settings page, scroll down till you find the 'Advanced camera options'. There should be an 'Edit' button there.

In the pop-up, turn on the option 'Allow multiple apps to use camera at the same time'. This will enable the 3rd option ' Media type'. By default this should say 'Let Windows choose'. Change that to the highest resolution, hit 'Apply'... and voila!

Now open the camera in MS Teams and your resolution should be awesome! :)

I have no idea why this setting is so deep in the settings. It's as if it was never meant to be found.