There is a serious bug in SQL 2016 SP2 and SQL 2017 CU5 that will mess the processing of SSAS models via SSIS.
The bug is described here:
There are some supposed workarounds that involves copying the missing file to the required locations, but the registry shouldn't be looking for the file in those locations at the first place.
Also I wasn't able to fix the problem due to a manifest mismatch. I will try to revert the SP2 update this evening, and if that doesn't work I will restore a backup for the VM. [EDIT: Reverting SP2 fixed the issue for me].
Bravo, Microsoft. Just... Bravo!
Thanks for the kindly warning.
And sorry for the situation that it brings to you.
I will discuss this with someone who is more familiar with SSAS for it and share the result here.
Besides, if you need any further help for Power BI Embedded, then please let me know.
I notified some senior people at Microsoft already and I am sure that the right people are already aware. I can also confirm that uninstalling SQL 2016 SP2 fixed the issue for me.