Apple today released a new 15.5 firmware for the Studio Display, with the update coming after a few weeks of beta testing. The Studio Display Firmware improves the performance of the webcam.
The Studio Display firmware can be updated by connecting it to a Mac running macOS Monterey 12.4, which was also released today. After installing the new Mac software, Studio Display owners can go to System Preferences > Software Update to install the firmware.
Apple has been working on a firmware update for the Studio Display since March, to address complaints about the quality of the webcam.
Read more at MacRumors.com