If the green camera indicator remains illuminated after you have closed all apps, restarted the Mac, tested in Safe Mode, and fully shut down the Mac, that is not expected behaviour.
Apple states that the green indicator shows when the built-in camera is in use. Apple — About the camera indicator light on Mac
The key check is whether the light remains on when the Mac is completely shut down, not merely asleep, locked, or at the login screen.
Choose Apple menu >> Shut Down and wait until the display is completely off.
If the camera indicator remains illuminated after the Mac has fully shut down, I recommend contacting Apple Support or arranging service.
If the indicator turns off during a complete shutdown but comes back on when macOS starts, check System Settings >> Privacy & Security >> Camera and Control Centere to see whether macOS identifies an application using the camera. Apple — Control access to the camera on Mac
Because you have already tested Safe Mode, you can also run Apple Diagnostics.
On an Apple-silicon Mac, shut down ( Do Not use Restart )the Mac, then press and hold the power button until Options appears.
Release the button, then press and hold Command-D.
Apple Diagnostics will check the Mac's internal hardware and provide a reference code if it detects a problem. Apple — Use Apple Diagnostics to test your Mac
If Apple Diagnostics reports a problem, provide the reference code to Apple Support or the service provider.
If it reports no problem and the camera indicator continues to behave abnormally, Apple Support can advise on the next step. Apple — If the built-in camera isn’t working on your Mac
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