Issues with Embed paginated reports for your customers under PowerBI embedded Gen2 preview

Hello, We are trying out the PowerBI Embedded Gen2 for paginated reports and embed it for our customers. We use A1 SKU for that. I have tested a dummy non-paginaged report, and it embeded fine (using the app owns data sample solution) , to make sure my workspace it set up correctly. When I tried to embed a paginated report (which does not have shared data and it is rdl), the web application gets embedded parameters fine, but the display errored out. the message is Failed to load resource with 401 and 500 status, can someone help? Is there a limitation of Gen2 for paginated reports embedded for your customer, for example, you have to share data as well? Thank you so much!