Folks - for anyone still having this issue can you please try with the latest Insider build (https://github.com/microsoft/azuredatastudio#try-out-the-latest-insiders-build-from-main-branch) and after installing, go to the command palette (Ctrl/Cmd + Shift + P) and run Clear Azure Account Token Cache.
If this does not address the issue, please comment on this GitHub issue: https://github.com/microsoft/azuredatastudio/issues/24104