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Problem:
Currently, when a dataset is connected to a Lakehouse as a datasource in Power BI Fabric, it defaults to a cloud connection mapped to SSO. In embedded mode, reports built on these datasets fail due to a lack of identity, as they do not inherit authentication from the service principal. To resolve this, users must manually adjust the datasource settings via the Power BI service
https://learn.microsoft.com/en-us/fabric/fundamentals/direct-lake-fixed-identity
Proposed Solution:
Introduce a new REST API or extend the current API functionality to allow programmatic setting (or re-setting) of the connection to the service principal, including updating datasources.
Benefits:
Automates the process, reducing manual intervention
Minimizes downtime for embedded reports
Enhances developer experience and deployment efficiency
Ensures consistency in authentication settings across different environments
Impact:
This feature will significantly improve the workflow for organizations embedding Power BI reports using service principals, ensuring seamless and automated datasource authentication.
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