Use a Service Principal to deploy a PowerBI report against Databricks OAuth with Direct Query

Yes, refered to Power BI REST API. Below you can find sample code.

$body = @{
    credentialDetails = @{
        credentialType      = 'Basic'
        credentials = @{
            credentialData = @(
                @{ name = 'username'; value = $username },
                @{ name = 'password'; value = $password }
            )
        } | ConvertTo-Json
        encryptedConnection         = 'Encrypted'
        encryptionAlgorithm         = 'None'
        privacyLevel                = 'Organizational'
        useEndUserOAuth2Credentials = $true
    }
} | ConvertTo-Json -Depth 6

$datasourePatchUrl = "https://api.powerbi.com/v1.0/myorg/gateways/$gatewayId/datasources/$datasourceId"
Invoke-RestMethod -Method Patch -Uri $datasourePatchUrl -Body $body -Headers $headers -ContentType $contentType

 The error is:

{   "error": {     "code": "InvalidRequest",     "message": "Property useEndUserOAuth2Credentials is only supported with credentials of type Basic and datasource type of Extension"   } }

But actually both conditions are met. Credentials type is Basic. Datasource type is Extension (can be easily checked via another API call).
It seems that the API is not actually implemented, and the error message is misleading.

Please advise.

Yes, refered to Power BI REST API. Below you can find sample code.

$body = @{
    credentialDetails = @{
        credentialType      = 'Basic'
        credentials = @{
            credentialData = @(
                @{ name = 'username'; value = $username },
                @{ name = 'password'; value = $password }
            )
        } | ConvertTo-Json
        encryptedConnection         = 'Encrypted'
        encryptionAlgorithm         = 'None'
        privacyLevel                = 'Organizational'
        useEndUserOAuth2Credentials = $true
    }
} | ConvertTo-Json -Depth 6

$datasourePatchUrl = "https://api.powerbi.com/v1.0/myorg/gateways/$gatewayId/datasources/$datasourceId"
Invoke-RestMethod -Method Patch -Uri $datasourePatchUrl -Body $body -Headers $headers -ContentType $contentType

 The error is:

{   "error": {     "code": "InvalidRequest",     "message": "Property useEndUserOAuth2Credentials is only supported with credentials of type Basic and datasource type of Extension"   } }

But actually both conditions are met. Credentials type is Basic. Datasource type is Extension (can be easily checked via another API call).
It seems that the API is not actually implemented, and the error message is misleading.

Please advise.