Photobooth camera not detected on video effects with USB Camera

I have a logitech c170 USB webcam plugged into my 2012 Mac Mini. The camera works fine on Skype, Facetime, and Photobooth for taking pictures and videos.

However if I try to apply and video effects such as the rollercoaster, I get into the following loop.

1. 
   

   Step out of the frame

   
   


2. 
   

   I step out of the frame and it says Background Detected, immediately followed by this.

   
   


3. 
   

   

   
   


4. 
   

   Camera kicks back in with the

   
   

As long as I am out of the shot I could leave this repeating indefinitely. I left it for 20 minutes and it continued repeating.

I have reset the Mac numerous times, killed the VDCAssistant in the terminal, problem still remains. It doesn't make sense that the camera works fine with all other applications.

Has anyone got any suggestions for a potential fix?