Can you please try the following:
1) Install pavucontrol, e g in synaptic package manager
2) start it from the command line or from the menu
3) Start audacity and then start recording
4) Go to the "recording" tab and see if the correct sound card (i e your
webcam) is selected for Audacity.
** Changed in: alsa-driver (Ubuntu)
Status: New => Incomplete
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Microphone on USB webcam not recognised by Sound Recorder
https://bugs.launchpad.net/bugs/612245
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