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can you give it a try and without changing location of this web cam connect it directly to the computer and see if the problem exists?
I tried and unfortunately it’s same behavior.
Maybe it would work if speakers are connected to computer but that’s against all in one solution and with minimum chance.
 
Sounds like there is no simple solution... In general it works like this: your telco participant is talking, their voice is reproduced on your speakers, your mic is catching it and sends it to the speaking participant like it was "your" voice and so they can hear it on their end on their speakers... as that "voice travel" takes some time it is delayed a bit and so the echo effect is created.

That been said the only way to avoid it (without software intervention) is to decrease your mic sensitivity and/or to turn down your speakers volume to such levels the echo is gone. Third option is IMHO not possible to be achieved in such builds and that would be mic/ speaker's physical separation, using directional mic, etc.

Headphones are the easiest I'm afraid.

And as for the software... Are you aware of this:

It looks like a lot of people are mentioning Krisp software as good solution. There is a free trial version so you can test it.

Built-in macOS Features:
  • System Preferences - Sound:
    macOS includes a built-in "Ambient Noise Reduction" feature in System Preferences > Sound > Input tab. This helps reduce background noise during calls.
  • Use Echo Cancellation:
    macOS also provides an "Use Echo Cancellation" option in the Sound Levels window, which is designed to minimize feedback when the computer's speakers are being picked up by the microphone.
 
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Hello all and sending special thanks to @PaulD-UK and @Aiwi but also others, who contributed. My convert of iMac 2017 all-in-one (mics, camera, speakers) is done and finished without issues.

I spent like 14 evenings reading this thread from post number 1 to the end. I made a lot of notes and took a picture of every step I did during conversion so I can later publish it all probably on github page to make it even easier for the others.

For iMac 2017 I used R1811 with Brightness board and without Crossovers. I bought Crossover, but it sounds terrible and I found out that if I connect speakers directly to driver board in series is sound similar to original 2017 iMac which is sitting next to this one (BTW anyone wants to compare something?), just with noticeably weaker bass which I hope can be improved using eqMac.
Fan of driver board is facing outside of iMac using original Fan exhaust. 3D Print and all modifications will also be included on github later.
I wanted one cable to "do it all" so 4K camera with AF works wonderfully, speakers also, charging M1 and M4 MacBooks without issues and ony issue I have is with double MEMS microphones.

The thing is, it seems to me that they record even sound from Mars. They are SO sensitive! My neighbor whisper to his wife's ear something and I can clearly record it from another room 🤪

They are recording some sound even when I disconnect the power from it and just connect USB sound card (that Ugreen from Ali) with MICs directly to notebook.

So my question is, how did you please @Aiwi managed to insulate them from the surrounding sound?
So finally issue with echo is only when using FaceTime. There are no cancellation or other sound correction related settings in System Settings / Sound (wherever) so only resolution is to use headset or AirPods.
I tested Google Meet and that's almost OK, google is probably using WebRTC library in Chrome.

Stock fan is much quieter than Noctua (which I held between fingers) when you use 180 Ω resistor for both. After more than hour, heatsink on R1811 is still pretty cold. Only lower part of display is warmer than original iMac. It is about 6 degrees Celsius warmer (41) in room temperature like 23. Maybe I use that Noctua for display after all.

I found pretty close color settings to original iMac 2017 which is sitting next to converted. I will post my build on github and then, start converting the second iMac I have 🪛
 
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