Unable to access microphone while using FaceTime on MacBook Air

Re: microphone does not work while using face time on Macbookair M1 chip 2020

have updated mac to latest version but issue still stays

Thank you for your post to the community, and for letting us know hardware ans software details, and what you have tried already. Of course, you would have checked that the microphone audio is not muted in Facetime...(video menu)

Microphone use for Apple's inbuilt apps does not need to be listed in the security / privacy settings.

See what to do: If FaceTime isn't working on your Mac - Apple Support

Eg: says :

If your microphone doesn’t work

• "Quit FaceTime, then open FaceTime again.
• Restart your Mac". (ie: Apple menus > Restart)

and

• "If you have multiple cameras or microphones connected to your Mac, check the Video menu in the FaceTime menu bar to make sure that you have the correct camera and microphone selected."

You could also check that the microphone is not already in use in another app.