Embedded paginated report in pbix not working

Hi All,

I have just tried the option of embedding a paginated report into a Power BI pbix report.

It works fine on desktop and in the Power BI Service.

We have an application that runs embedded Power BI reports using service principle and "app owns data" configuration.

standalone Paginated reports work fine embedded in the app.

So I believe all the security etc as per link below is fine, since a standalone paginated report embedded in the app works fine.

https://docs.microsoft.com/en-us/power-bi/developer/embedded/embed-paginated-reports?tabs=organization

The issue is the paginated report, embedded in a power BI report, which is then being called by the app.

Is this a known issue, or is there another setting we need to enable to get this to work?