Webcam to use with Mac Mini

I use 2 Logitech 270s with my Macs.

They are very cheap . . . under £20 from Amazon and though they are only 720p they give an excellent image, much better than many 1080p ones.

No bells and whistles, just good solid performance.

Logitech C270

I usually use logitech webcams

iphone5 is wayyy too old for work as a webcam for a mac Continuity features and requirements for Apple devices - Apple Support

I am using one on an M2 mini running the latest version of Sequoia (15.3.1) and there are no problems.

Your mention of security problems sounds like misinformation.

My Logitech cameras were bought before Sequoia and work OK so it looks as though the article is scare-mongering.

These cameras have always had a small yellow light to show they are in operation.

Congratulations on your new Mac.

The bare minimum for continuity camera - using your iPhone as a camera and microphone with a Mac - is iPhone XR (2018) which came with iOS 12. However, some functions are not available even with this model so later is better. The best an iPhone 5 can manage is iOS 10 so no, it won't do at all:

Continuity features and requirements for Apple devices

As to an external camera, you will have to work out what you prefer. Start by having a look at what others recommend and then do a bit of research. I found a few in just a couple of minutes.

Macworld

Digital Camera World

Tech Radar

I don't know any of these either. 🙂 Some might be made specifically for mounting on a MacBook Air/Pro bezel.

Do some searching and you will come up with lots of suggestions and even more opinions. Don't get the cheapest one you can find. I am confident in saying that this will make you dissatisfied with it and you will be out shopping for a better one sooner rather than later.