Hi there,
I get that LEDC is not initialized Error too, but Camera works anyway.
from that error I would say it’s the SD card NOT being Fast enough.
I used BSP 2.0.8 of the ESP32 (exspresif) package, had to roll back from the Beta or alpha package that’s current.
look at that output info is yours the same on the compiler?
FQBN: esp32:esp32:XIAO_ESP32S3
Using board 'XIAO_ESP32S3' from platform in folder:
C:\Users\Dude\AppData\Local\Arduino15\packages\esp32\hardware\esp32\2.0.8
Using core 'esp32' from platform in folder:
C:\Users\Dude\AppData\Local\Arduino15\packages\esp32\hardware\esp32\2.0.8
HTH
GL 
PJ