Credentials provided for the Web source are invalid (OneDrive data source, not on-premises)

I have been exploring solutions for a while. and today I managed to resolve it. Hope this helps the issues at your end. 

I followed these steps:

1- Go to the Dataset in PopwerBI webservice

2- from dataset settings page, go to "Garteway and cloud connections"

>> 2-1 in this section, you will be able to see a sub-section "Cloud Connections" which ahs a dialogue box showing where your cloud based dataset is stored. 

>> 2-2 click on the button "Personal Cloud Connect", and select "Create Connection". Then a new setting panel will appear to the right side of your screen. 

3- to set up connection in this panel; 

>> 3-1 first define a name for the connection

>> 3-2 select OAuth 2.0 for Authentication Method

>>>>3-2-1 click on Edit Credentials, then you will be asked to login to your account

>> 3-3 under the General, select "Organisational" for the Privacy level

>> 3-4 tick the last box to allow the connection to be used with on-promises data gateways 

>> 3-5 click on "Create" button (Note: if you have not populated data correctly in this panel, then the "Create" button looks diabled (grey colour))

4- Now you need to apply the connection which you have created. To do this, go back to Gateway Connections and within the Cloud connections select the connection you have created (for example in this case, I name the connection "Test1". Then I had to find the Test1 from the menu to select it)

>> 4-1 then select "Apply"

This way the Failed message which is sitting under the Data source Credentials section should this appear. 

Credentials section before applying the new connection:

Credentials section after the new connection is applied:

Now go and process with Refresh Now , then you will see that the error symbol which was sitting in front of Dataset Refresh details will disappear and dataset will be refreshed withoutt any issues. 

Hope you find it helpful 🙂