KC has no setting for webcams and has no control over the use of the webcam. It will search Windows for a compatible imaging device and use it if one is available. This error either means the webcam is not compatible with Kennel Connection or there are multiple devices showing as "Imaging Devices" in your Windows Device Manager.
One way to troubleshoot is to go into Windows Device Manager and remove/uninstall all imaging devices other than the webcam. Since this is not part of the Kennel Connection program itself, we are unable to assist with this. If you are not sure, consult a local technician.
You can try a wired Logitech camera, although most plug and play webcam devices will work with Kennel Connection.