Edit semantic model greyed out for semantic model based on dataverse data

Hi PunChili 
Thank you for reaching out to the Microsoft Fabric community forum.

Semantic models built with the Dataverse connector are read-only in the Power BI Service, which is why the Open semantic model option is disabled. This restriction is not due to workspace admin permissions or the Fabric tenant setting for editing semantic models in the Power BI Service. Even with full access and the setting enabled, semantic models from Dataverse cannot be edited online. Dataverse creates a DirectQuery semantic model with system-managed schema, relationships, metadata, and security rules, so Power BI prevents editing in the service to maintain Dataverse’s integrity. To make modeling changes like renaming fields or adding calculations, you must use Power BI Desktop and republish. Service-side editing is only supported for Import models, Direct Lake models, and other Fabric-native semantic models, not for Dataverse sources.

For reference,please refer to the microsoft official documentation on
Edit semantic models in the Power BI service - Power BI | Microsoft Learn

I hope this helps. If you have more questions, feel free to ask and we’ll be glad to assist further.

Best Regards,

Microsoft Fabric Community Support Team.