Power BI Embedded does not support full XMLA read/write Power BI Embedded currently does NOT support XMLA Endpoint (read/write) like Power BI Premium.
Power BI Embedded (A SKUs like A1, A2...) only supports XMLA read-only (if enabled).
The function of deploying models via Visual Studio/Tabular Editor requires XMLA read/write, so you get the error.
You can check the XMLA support status in capacity settings here:
Log in to Power BI Admin Portal
Go to Capacity settings
Select the Embedded capacity you are using
Look for “XMLA endpoint”: you will see that it only supports read-only.
You can try
Using Power BI Premium (P SKU or F SKU)
If you want to deploy AAS/tabular models directly from Visual Studio or the Tabular Editor, you must use a workspace assigned to a Power BI Premium capacity (P or F SKU) — as only these SKUs fully support XMLA read/write.