Supriya Rao , what is the application you are testing?
You try explicit proxy recording and configure application to go via that proxy.

I am testing an insurance application hosted in AWS. 
And yes I tried explicit proxy recording where I was facing below error til yesterday.

[Net An. Error (470c:4348)] SSLAccept(ssl_id = 3282261757616 = 000002FC360BCEB0) Failed, ctx = 000002FC360B0890, err = "error", err code = 1, err msg= "error:00000001:lib(0)::reason(1)
error:0A000416:SSL routines::sslv3 alert certificate unknown
"
[Net An. Error (470c:4348)] (Sid: 4) Negotiate Client -> Proxy SSL Handshake Failed!!!

But from today morning its throwing AUT process crashed error and it's not allowing me to record anything if I click 'Continue" and asking to stop recording again and again.

I was getting the exact same error today which was resolved after I enabled 'Use the LR proxy to record a application' under Proxy Recording Settings.

This setting was disabled before and vugen was able to record everything till last evening. 

This error is due to chromium versions higher than 127.

Option 1 - Enable LoadRunner proxy in Recording options to record your AUT. This option will not work if your application uses SSO

Option 2 - If your organisation allows you to downgrade the chrome/edge versions lower than v127 then you can go for that approach. 

Option 3 - Use DevWeb protocol instead of Web protocol. It is easy and lightweight compared to web protocol. Recording also simple. youtu.be/adhTsAJPUts

Option 4 - If not, raise a case with OpenText and get the hotfix delivered for the corresponding VuGen version you are using. 

[EDIT by JHF Remmelzwaal ]
Option 4 is they way forward. It saved my day on version 24.3.01