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Mine did the same thing after about a year of ownership. The retaining screws at the ends didn't actually catch the pole that is fed through the channel in the awning and the gutter. So every time I opened it and closed it, the ends pulled out like in our first photo. The dealership ended up replacing the awning material with a new one under warranty. From the looks of your second photo, you will need a new awning material too. If you just want to repair it, you can take it off, have it resewn at the ends and then put it all back together, this time making sure the pole is placed properly and the screws actually catch the pole so it won't slide out again. I am not sure how well it will work when resewing it though... if the material is rotten, it most likely won't hold. Good luck!
Sorry but the awning is toast. No repair is going to hold up because of rotting fabric. I replaced mine a couple of years ago. Went with the Solera brand and been very happy so far. Wiping it down while rolled up with 303 protectant goes a long way towards longevity.
You might try the old iron on knee patches that mom used to patch our jeans with?
Maybe one on top, one on the bottom, it might buy some time but it looks like its just had it.
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