But since the DAW app is not present in current Android 14 beta builds, we can't actually use this functionality, though we can surface the "Webcam" option in "USB Preferences" as shown in the first post.
The "Webcam" option appears when the system property ro.usb.uvc.enabled is set to true. Settings calls UsbManager#isUvcSupportEnabled(), which reads this property, to decide whether to show this option.
When you select "webcam", UsbDeviceManager sets the USB config to "uvc" and the android.hardware.usb.action.USB_STATE broadcast is sent with the USB_FUNCTION_UVC boolean extra. DAW presumably listens for this broadcast to know when to start forwarding frames.