There appears to be a bug when sharing a report, which resides in a workspace that is configured to use dedicated P1 premium capacity, to a user without a pro license.
1) my users are consistently faced with this message before they share which is incorrect...
"Only users with Power BI Pro will have access to this report. Recipients will have the same access as you unless row-level security on the dataset further restricts them. Learn More" It says, "Only users with Power PB Pro"... Only upon going into the learn more, will they find that it's Pro "or Premium capacity". So this is very misleading and confusing for users.
2) If you proceed to share, the link the user receives - after successfully signing into Power BI, and waiting for Power BI to configure --- not sure what it's configuring for them as it's a cloud app and they have no license -- they receive a broken 404 error that the page, i.e. the report can not be found, so they have no way of directly knowing what report had just been shared with them
The only way they can then see the report is to log into app.powerbi.com (which they wouldn't know how to do as a first time user, navigate to "shared with me" and then find the report. Again, something they wouldn't know how to do as a first time user.
How to reproduce the issue:
Create a new report via desktop or PBI Service.
Save or publish to a workspace on premium capacity P1
Open the report, and click 'Share', enter the email of a user without a pro license
User will receive a link,
User clicks link and follows prompts to sign in... user will receive the 404 page can't be found error
If user then logs into app.powerbi.com and navigates to "shared with me" they can find the report.