SSRS with power bi

Which version are you on?

SQL Server Mobile Report Publisher is deprecated for all releases of SQL Server Reporting Services after SQL Server Reporting Services 2019. It is discontinued starting in SQL Server Reporting Services 2022 and Power BI Report Server.

https://learn.microsoft.com/en-us/sql/reporting-services/mobile-reports/create-a-reporting-services-mobile-report?view=sql-server-ver16

If you intend to use it for Dashboard, you need to install the latest version of the PBI Desktop (for Report Server, not PBIS, they are different)
If this is PBIRS, then you should use Report builder for Power BI (Download Microsoft® Power BI Report Builder from Official Microsoft Download Center)

With that said, this could be one of the security setups, where Server Admin has not authorized users to connect to the dataset out of server (via local computer). to circumvent that, you should have your reports built with SQL connectors and publish the connectors.

The screenshot with the error message is "user friendly". If you have access to the server, take a look at event logs, and RS Server logs to take a look at the actual error message. if the log file is limited, update the rsreportserver.config for verbose logging, then regenerate the error, and look at the log files again.

The only time i saw this message was when our report server db was moved, and we forgot to reconfigure the server to the right database. so updating the rsconfig (then service restart) helped get rid of the error.