Power Bi Embedded "Appowndate" issue using report with direct query

Hi,

Im working on Power Bi Embedded Appowndate POC in dev envirnoment. I have no issue in running a report when report and dataset are together, but im facing issues when the report is using direct query. (like following) into another dataset. 

1. dataset => dataset (report)  [report id='abcd-efgh-ijkl-mnop']   works
2. dataset => report1(dataset) => report  [report id='1234-5678-9432-9454']   doest not work works. 

Did anyone faced similar issue, using Embedded Appowndate in java. 

Thank you in advance.