It seems like since yesterday evening (Europe time) there's a platform-side issue with Network Connectivity Configurations API on Azure Databricks Accounts.
API calls are being redirected to a login page, causing multiple different tools, such as Terraform, SDK, CLI, to fail. Other Account APIs are working just fine with the same credentials, so it doesn't seem to be a valid authentication error.
It was raised on Terraform provider Github by multiple users, as this is what its error message suggests: [ISSUE] mws network connectivity config issue : invalid character '<' looking for beginning of value...
I know posting here is not ideal way of reporting technical issues, but I hope this comes to attention of Databricks personnel as I don't have a better comms channel handy.