For anyone else who has been going round in circles trying to use Skype, but getting the message “your webcam is in use by another application” – read on for the solution.
First, in Windows 10 there are privacy settings for your camera and microphone. You need to give Skype access to both. Go the Windows menu > Settings > Privacy > Camera (and then Microphone).
Click the slider next to “Let apps use my hardware” to ON.
Now go down the list of apps below and make sure the slider next to Skype is also ON.
Then you need to disable and re-enable the webcam.
Go to the Windows menu > Device manager > Imaging Devices and find your webcam. Make sure the drivers are up to date. Then Disable device. Reboot your computer. Go back to this menu and Enable device.
Open Skype, and cross your fingers. It should now work.