Create / configure an Azure automation account
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Here is a video guide which I created for the Patch My PC report which covers the steps outlined below and for setting the API permissions.
In the Azure portal, locate your automation account. Under Identity, enable a System assigned identity. The identity will bear the same name as your automation account and will be visible as a service principal in Azure Enterprise applications.
You do not need to assign a role in Azure to this identity.
If you don't have one already, create an in Azure.