The Lync 2013 client WILL NOT display the local camera's panorama video strip in a peer-to-peer Lync call, but WILL display it locally on a multiparty conference call.
This is by-design and is simply the way that Microsoft designed the Lync 2013 client expereience. The far end(s) will all see the panorama video strip regardless of the the type of call (peer or conferece).
- Jeff Schertz - Microsoft Solutions Architect [Blog]
I believe we figured it out. It seems that if you are "in a call", the panoramic view is not shown on the side where the Polycom camera is, but it is visible on the far end. If you are "in a meeting", then the panoramic view is visible on both ends of the call. I hope this helps someone that may be having a similiar issue.