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The name of this option is misleading:
`Admin portal > Tenant > Users can work with semantic models in Excel using a live connection.`
Disabling it also prevents live connection at the power bi level, not just excel. In the description of this option there is no word that the live connection for power bi will also be blocked.
When it is turned on, a message appears:
"You don't have permission to connect to datasets in the Power BI service"
As I see in this article: Solved: Error message: don't have permissions to live conn... - Microsoft Fabric Community
it's the same option, but it was better described before:
"""
Allow live connections
Users in the organization can use Power BI service Live Connect. This includes Analyze in
Excel.
"""
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