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Hello Team,
Using Power BI Embedded with datasets that include a DirectQuery connection to a Power BI datasets or Azure Analysis Services model is not currently supported which is a limitations as per MS Document Using DirectQuery for datasets and Azure Analysis Services (preview) - Power BI | Microsoft Docs.
This use to work fine previously but now it is a limitations. Team please have a look on this limitations and let us know if there is any possibility to try this options.
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