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This is done by entering the Mac's Recovery mode. If macOS still fails to show the correct prompt to authorize the ACE component for use, you’ll need to manually authorize it.
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From the menu bar, select Camtasia > Check for Updates to install the latest version. Please make sure you are running the latest version of Camtasia. Recording system audio on macOS 11 (or later) with Camtasia results in and error message, distorted audio, or no audio at all. When installing the System Audio Component the install fails.
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