I wish FaceTime had more options to tweak video quality. I have a higher end webcam for my Mac mini, and yet the video resolution it produces in FaceTime is terrible, and there doesn't seem to be any way to adjust it. Streaming from YouTube or using Zoom produces video of far superior quality.
the problem is the camera on the macs, apple use cheap components for the cameras, even older macs have better image quality than the newer models, a few months ago an article came out about this comparisons, mr cook decided to use cheaper materials in order to make more money, even if there is an option available it won't improved anything, not sure but i think those cameras are running at 720p and if they are 1080p they are very low 1080p, but most likely they are 720p, i made a comparison with a friend, his camera against an external Logitech camera, at that time it was the c920, i'm sure Logitech have newer models that might produce even better picture quality
when i loaded the logitech camera on facetime, which is 1080p 20mbs
it look 1,000 times better than the face time camera from my friend mac
yes no one wants to use an external camera i get that
but the problem is not , not having an extra video quality option in face time
yes they option might be handy for those with slow speed connection, set your video quality based on you internet speed
but it doesn't matter if you have fiber that won't make the image look any better as long as apple continue to cheap out in parts
if you want better video quality simply buy a good external camera
logitech have some good cameras and they are compatible with facetime
also they are many video comparisons in youtube about mac integrated cam vs an external cam
sorry for my bad english