400- Bad Request - embed token with effective identity is not supported for this datasource

Hi Rajesh_Rudra ,

This error occurs when effective identity (RLS user impersonation) is not supported for the datasource in your lower environments

Datasource Authentication – Use OAuth2 or service principal authentication, as Windows authentication does not support effective identities.

Permissions – Ensure the service principal or user has "Read" and "Build" access to the dataset and workspace.

API Request Validation – Compare workspace & dataset IDs between lower environments and production.

Effective Identity Usage – If the lower environment API request includes effectiveIdentities, try removing it if RLS is not required.

Generate an embed token in Power BI embedded analytics - Power BI | Microsoft Learn

DirectQuery & XMLA Endpoint – If using DirectQuery, enable XMLA endpoint (Read-Only or Read-Write) in the Power BI portal.

If there is any post helps, then please consider Accept it as the solution to help the other members find it more quickly.