Power Bi Sharing & Embedding - Can External Organization Embed Our Reports?

Hi all,

We've recently developed & published a Power Bi report for a client (a separate organization), and they requested for us to share the published report link for them to embed in their own company Teams channel etc.

The thing is, I've tried the a few methods of sharing the URL, but the client keeps facing this error when trying to embed the URL in teams -

The client users have been added to our workspace that I'm publishing the report to (as external users). I've tried sharing the direct link (Specific People) via email to them, I've created an app and shared that to them, I've checked the permissions and all the client users have direct access to the report (since they're already part of the workspace), but they still can't embed it, even though they're able to open the report in their web browsers.

I am not very familiar with Microsoft's tenancy/licenses etc - but could it be because we're both separate organizations, hence such sharing/embedding won't work due to our separate MS environments?

So my question is, is such a setup possible (for the client to embed our report in their Teams), and how do I get this working?

Please let me know if more information is needed too.

Thank you.