For Automotive OS (not Android Auto) you must add system image (at the moment only for Volvo Polestar 2 image)
- In Android Studio, select Tools > SDK Manager
- Click the SDK Update Sites tab
- Click Add icon
- Enter the following Name and URL, then click OK
Name: Polestar 2 System Image
URL: https://developer.polestar.com/sdk/polestar2-sys-img.xml
Click Apply, then click OK and create a car AVD