Lord Mndz,
The last time I saw Andy post on the forums, was Nov 11th 2018. I'm not sure if the GM has read the forums since then. I hope they have, but as players we have no way to know... I guess what I am saying is, I understand your frustration.
Since Andy/the GM has not been able to respond to the thread. I don't want you hanging in the wind, with no response at all.
While I have no way of knowing exactly what the GM would say in this specific case. Having seen some other cases like it, I can hazard an informed guess as to the kinds of things Andy would probably say...
1). When reporting a problem, please state the name/s of the country/s effected and the world on which they are based. (I have previously seen Andy say that if he tries to look into a problem without this information it is like finding a needle in a haystack and he often gives up).
2). The exact procedure used by the automation was programmed a very long time ago. As such it is sub optimal. The GM's would love to update it, and many other things, but limited resources, and developer time, prevents some systems from being updated in a timely manor.
3). Because of past cases, where a player would be absent from the game for a long time, or lack full knowledge of it's systems. The Automation is programmed to step in and take control, when a nation is close to what the game considers to be a failure state.
3.1). The situations that trigger the automation to take control of a country, include, but are not limited to... A low Education index, a low Employment index, or a low Finance index. All of these can cause situations where it is almost impossible for a country to recover, if left to long. So the automation steps in when it sees these indexes drop to critical levels.
4). As far as I can tell, the automation was programmed as a singular whole, for the entire game. As such, it would not be possible for the GM's to disable the automation system in your country, without disabling it for the entire game. Which would cause total chaos across all worlds. Given that, the only way to get automation off in your countries, would be for the indexes, Education/Finance/Employment, to rise to safe levels.
5). Usually, the automation does a reasonably good job of restoring a country to functional index levels. However it does tend to spend more money than absolutely necessary to do it. (The build/close schools bug, that you are witnessing right now). However once a country is to far gone (usually anything below education index 60) then there is no way to prevent the death spiral, and it's failure becomes almost inevitable.
6). This is why it is vital to keep on top of your Education, Employment, and Finance indexes. A failure to do so risks the nation collapsing, the automation tries to step in, but it's far from perfect. The cleanest way to prevent it, is to stay way above the danger levels at all times. (Indexes above 120, prevent auto ordering of schools/hospitals, even when automation is enabled, try to keep your Education, Healthcare, and Infrastructure indexes above a minimum of 120 at all times, so the system never thinks it needs to order schools for you).
7). Having looked at the nations in your empire (finding it wasn't easy without the country names and world, but I have more free time than Andy, so I was able to find the needle in the haystack). Some of them have fallen below fatal levels, and are probably beyond saving at this point.
8). Since each additional nation in an Empire drives up the government costs in all nations in the empire, these failing countries are dragging down the others, endangering your entire empire. It is probably best to abandon the nations that are beyond saving, so that your government costs decrease and you can restore balance to the rest of the empire. After you have stabilised the situation, you can begin to expand again.
I'm sorry I can't be of more help. However considering the way the automation was programmed, I think these are the best options you're going to get. Even if Andy does return to the thread and answer your questions, I doubt there is much he can realistically do, given the programme they have to work with, and the limited developer staff.
Signed President of DanNation on LU