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This sounds feasible, this is how I would do it to save on costs. But then it can be a bad user experience. And as far as I know, you have the virtual background even when using a potato to stream.

Maybe if the device is not good enough then they push it to the server side?

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No, my linux machine doesn't have the option to blur backgrounds anywhere. I don't think they do it server-side. Also, not everyone wants it. I'm not a fan of it since it usually breaks down when multiple people are on the screen, even in the background.

This. At least Zoom does it client side and only if your client is fast enough.

https://support.zoom.com/hc/en/article?id=zm_kb&sysparm_arti...

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