Webcams always seem to have been cack on Windows for some reason.Almost all reviewers have noted that the webcam quality on Snapdragon laptops is generally better than Intel/AMD laptops.
It's literally easier to get a high quality image by streaming it from your phone through the wifi.
Either way image processing isn't magic - anything that you can do with an ISP you can probably do with a programmable GPU too.
So I'd say it's a software issue rather than a hardware one.