Create / configure an Azure automation account
Video guide
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.
Create an Azure automation account
If you don't have one already, create an Automation account in Azure.
If you wish to use a Run as account to access Microsoft Graph and Azure resources be sure to select that option, however I strongly recommend using a Managed Identity instead.
Enable a Managed Identity
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.
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