[BUG] Clear Auth from Local Storage on 401 - Auth API Errors

[fehmisener]

Describe the bug
When a 401 - Auth API error occurs, the authentication token remains in local storage, and no error message is displayed to the user.

To Reproduce

1. Trigger a 401 - Auth API error (e.g., by accessing a restricted page without valid or expired credentials).
2. Observe that no error message is shown, and the authentication token remains in local storage.

Expected behavior
Upon receiving a 401 - Auth API error, the authentication token should be cleared from local storage (so that we can flow to the login page), and an appropriate error message should be displayed to the user.

Additional context
Implement proper error handling to clear auth data from local storage and notify the user about the authentication issue with the same design guidelines.