Two things here.
First, the liquid syntax error is almost certainly the authentication_type value. Microsoft docs confirm the correct value is powerbiembedded not embedded. The tag should be:
{% powerbi authentication_type:"powerbiembedded" path:"..." %}
If you or Studio are writing type:"embedded" that will throw a syntax error since it's not a valid value.
Second, yes the Power BI Embedded license (capacity) is a confirmed prerequisite. Microsoft docs state: "Enabling the Power BI Embedded service allows you to embed dashboards and reports created in the new workspace."
You need to enable the Power BI Embedded service in PPAC under your Power Pages site settings (Manage > Services > Manage Power BI Embedded), and that requires an actual Power BI Embedded capacity (A SKU, EM SKU, or Fabric F SKU) to be provisioned and associated. Without that, the service can't be enabled and the powerbiembedded auth type won't work.
So fix 1 first (check the exact value in the Liquid tag), then confirm the Embedded service is enabled in PPAC.
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