You’ll find the new setting under Settings > FaceTime in the section AUTOMATIC PROMINENCE.
I’ve been doing a lot of Skype, Zoom, and FaceTime calls in coronavirus time. With more than two people on a call, the various approaches, and their flaws, become obvious.
I get the value of automatic prominence/face zooming. But it gets distracting, especially when you have many people on a call and several people are speaking at once. The tools to moderate large discussions are rudimentary, so the autocratic “mute all” seems to be the best play.
For me, no solution rises to the top. No one has really figured out the ideal solution, but hopefully the providers are learning from this experience and the next wave will be better.