What codec do the AVI files use?
Can you provide us with a sample AVI file so we can investigate? Send an link to aebugs@adobe.com. Thanks.
That said, I suspect that the problem is that the codec in the AVI file is no longer supported by After Effects due to the removal of support for legacy 32-bit QuickTime codecs. From your screenshot, you appear to be on macOS. On macOS, AVI files are generally not supported in the same way that they are on Windows, but some AVI files could be read in older versions of After Effects because they used codecs that were provided by the legacy 32-bit QuickTime. (The same AVI file may open on Windows, depending on whether or not Windows provides that codec.)
More information about the removal of legacy 32-bit QuickTime codecs, and which codecs will continue to be supported by Adobe applications, is here:
Dropped support for Quicktime 7 era formats and codecs
We understand that the removal of legacy 32-bit QuickTime codecs will require workflow changes for many people. However, as Apple has ended support of 32-bit QuickTime on Windows, and has announced that macOS 10.13 (High Sierra) will be the last version to support 32-bit applications (see links below), the ability to use the legacy codecs is no longer viable for any application.
Apple Ends Support for QuickTime for Windows; New Vulnerabilities Announced
https://developer.apple.com/news/?id=06282017a
We recommend that you transcode any footage using legacy codecs to a new codec. You can do so using Adobe Media Encoder CC 2017 or earlier, which is available to you using the Creative Cloud desktop application.
Install previous version of your Creative Cloud app
If you would like to see native support for a specific codec added to a future release of After Effects or other Adobe video applications, please submit a feature request for that codec here:
https://adobe-video.uservoice.com/