Hello Sarah,
Thank you for the response.
iPhone
Auto brightness is now working. Thank you very much.
All 'Accessibility' settings were at default only and as suggested by you. Toggling Auto-Brightness under Settings/ Accessibility/ Display & Text Size off and then back on made it work again. All these days, I was toggling the Automatic button under Settings/ Display & Brightness (which is actually the switch for Light/ Dark themes) and wondering why it wasn't working. I don't understand why Apple would bury the auto-brightness switch so deep inside Settings instead of under Settings/ Display & Brightness, which is much more intuitive and logical.
Thanks for pointing me to this menu.
Here is another question:
On Android devices, if auto-brightness is enabled and I change the brightness level manually, the system 'learns' my preferences over time and tunes the setting automatically to suit my requirements. Is that how it works on Apple products? I remember turning this feature off on my iPhone long ago because I never liked the brightness level that iOS set for me, and didn't notice the system learning my preferences over time. Thats why I stopped using it and didn't bother about it. Has that changed or does Apple still think it will decide what is right for me?
MacBook
I will try creating a new account as you suggested and report my findings. Thanks.