QuickTime does not detect iPad for Movie Recording

I have an M1 iPad Pro connected to an M4 Pro Mac mini via an Apple Thunderbolt 4 cable. If I open QuickTime I can select my iPad upon clicking "New Movie Recording" so all is fine. However, if I open OBS Studio (Open Broadcaster Software) before opening QuickTime, I cannot select the iPad anymore for Movie Recording in QuickTime. Somehow OBS is able to mess with QuickTime's ability to detect the iPad. Even after closing OBS Studio I am not able to select the iPad.

I cannot replicate this when I connect my iPad to my M1 Pro MacBook Pro, it only seems to fail when I connect to my Mac mini.

The only difference that I do notice is that if I open up OBS Studio on my Mac mini, there is a purple dot in my menu bar, whereas there is a green dot on my MacBook Pro.

Any help is greatly appreciated (although this feels like a bug)!

PS: Software is up to date everywhere and I tried about 5 different cables of USB C type, I doubt the cable is the problem.