The Azure Account extension has been deprecated and it has been replaced with the Azure Resources extension to sign in to Azure and get the Azure resources into the local Vs code environment.

Also, make sure that when you are signing into the Azure, it authenticates and redirects you to the appropriate US cloud portal.

Check if any updated or latest version release occurred for Azure Automation extension in VS code. Disable the extension first, update and then enable it.

After following the above, I was able to successfully authenticate into Azure Automation account and viewed runbook resource in the local directories as shown.

Check the VS code configuration settings as detailed in this Blog by @stephenwthomas and modify it accordingly.

Also, you can refer this SO by @Steve for the similar information.