Dataverse PBRS functionality

Hi lherbert501 , Thank you for reaching out to the Microsoft Community Forum.

Yes, having three datasets (Country parameter, City parameter and the main report dataset) is the correct approach for cascading parameters in Report Builder / PBRS. The key is that the City dataset must reference the Country parameter, so the available cities are filtered based on what the user selects in Country.

For your City dataset, filter it using the Country parameter. Then in Dataset Properties -> Parameters, map @Country to =Parameters!Country.Value. Also ensure the Country parameter allows multiple values and that the City parameter uses this dataset for its Available Values. This is what creates the cascading behaviour, the City list refreshes based on the selected Country values.

For the main report dataset, the same idea applies. Reference both parameters and filter with IN since they are multi-value parameters. Report Builder will pass the selected parameter values to the query automatically. Even when using the Dataverse read-only SQL endpoint, this pattern works because cascading parameters are handled by the report datasets and parameter mapping, not by stored procedures or SQL functions.

Use cascading parameters in paginated reports - Power BI | Microsoft Learn

Add a multi-value parameter to a paginated report - Microsoft Report Builder & Power BI Report Builder | Microsoft Learn