It’s not a Logitech issue, did more digging and found this post FW 13 AMD not responsive when connecting monitor via USB-C - Community Support - Framework Community
At the end of the post there’s this: “EDIT2: I disabled the AMD Audio CoProcessor and it worked. I was able to plug my external webcam in and it was recognized and the laptop showed no other issues as described above. So far I am not seeing any negative consequences of disabling the CoProcessor, so for the time being I will keep this disabled.”
I don’t have AMD Audio CoProcessor but I did disable AMD HD Audio Device and AMD USB Audio Device and now I can use the webcam without crashing. I have no idea if this is part of the Framework drivers or if this is an AMD bug, I only have Intel and Qualcomm machines to test on (both of which are just plug and play).