This error occurs when the microphone permission is released in Windows 10. Make sure that microphone access to this device is turned on in Windows Settings-> Privacy-> Microphone, Make sure Allow apps to access your microphone is on
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Check the sound playback on your PC first. You may get this error if you try to record on a PC that is unable to play sound. If you try to record from a PC that can't play sound, Click the Sound button in the Ocam main window.
A pop-up menu will appear and the system sound recording is checked, but it should look like the following.