I've hit sort of the same deal, but my video was working but if I selected blur as the virtual background things would lock up and the video (at least to me?) froze up until I went back to None.
This morning I re-tested, and the video appears to be working, and the "blur" is working even though the Virtual Background won't let me select it without locking up and shows as being "None". The picture will also do some gray ripple deal.
I also hit an audio issue in this version where Zoom no longer shows my headset mic input as an option, and will only work with that mic for a short period if I have it set to "System Source" enough though the sound panel in Ubuntu shows the mic feed as being fine. It seems to me this version has quite a few bugs to it.