seems as if something has stubbornly blocked access to the camera - it could also very well be the camera
I believe our phone's hardware is protected for 1 year by motorola.
however, before we go that route, the only thing I would recommend is to do a factory reset.
It's a pain, especially after you've set up your apps/email/etc, however motorola may also tell you to do the same anyways.
curious, when you updated to lolli, did you OTA and install or did you clear system cache too?
it is not mandatory to do so, and it shouldn't be, though it seems recommended to factory reset or at least clear system cache before this update.
by doing a factory reset, we will check to see that the OEM stock software is able to successfully talk to the hardware, without any 3rd party apps installed even better
another question, is the flashlight you used the one from the notification drop down shade, or a 3rd party app?
also something random to try, turn on flashlight and then try and launch camera
does at least flashlight still work?
oh yeah, have you tried a hard reset/reboot? (doesn't wipe personal data)