The primary difference between capitalistic societies and socialistic societies is how goods and services are allocated. In a capitalistic society people sell their services at a market rate along with products. People take the income/profits they earn from selling their time and products at a market rate and use them to purchase the products they want.

Socialism is quite different. A centralized authority determines what labor rates are worth and often dictates the prices of goods.

Under socialism, people are expected to produce according to their abilities and consume according to their needs. So, even if they are paid nothing, they are expected to produce. The closest thing to that is a family, where young children are expected to chores even if they are not paid and their parents provide for their needs.

You will never totally eliminate capitalism even if you automate production. All that does is eliminate the need for human labor. There are still limited resources and capital that need to be allocated either by the market or the government.

You won't even eliminate labor; labor will always have a value even if it is competing with machines. I buy man-made rugs which cost more than machine-made rugs. Someone will want my money to create a rug and I will continue to want to buy one.

Rather than capitalism disappearing, it won't. The scenario you are describing would evolve into one where every person would enjoy a "universal basic income" capable of meeting their living needs and even many of their wants. But it won't end the selling or purchasing of labor or the need for a marketplace to allocate limited resources and capital.