In a work environment, I would expect the person I'm talking to to be presentable, ie their avatar would be presentable, so no goofy backgrounds or annoying accessories.
But the key for me is, I'd actually have something to see. So often in my work in in meetings and three people have cameras on and the rest don't. I don't really care what they look like, I care if they're engaged, nodding their heads, their facial reactions.
I don't always have my video on either, I don't have great upload speeds so I usually appear as a big blob anyway. I'd happily have whatever representation of me be in my place if it meant people could see my reactions