I created a new report using the September 2020 Desktop version using Direct Query. It runs fine on the desktop and all M code is folded and I can see the native query.
There are two other small tables that I just keyed in (they relate to how fields will work with the DAX SWITCH() function) but are not used by any of the queries in the M code.
The report is connected to the gateway fine and I can trigger a refresh which works. It is connected to an on-prem SQL Server. Again, 100% functional in the PBI Desktop, and nothing works in the service.
But when I publish to the service, I get this for every visual using the direct query table.