Were you getting above error in Power BI desktop or Power BI service?
You may see such an error when trying to configured a dataset for scheduled refresh. This happens when the data source you used, within Power BI Desktop, isn’t supported for refresh. You will need to find the data source that you are using and compare that against the list of supported data sources at Refresh Data in Power BI. Also, it is not allowed to schedule refresh a dataset which combines On-premise data source and online data source.
To troubleshoot this error, please first check what data sources are contained in your dataset. In Power BI Desktop, please go to File -> Options and settings ->Data source settings to check data sources, and post a screenshot about the data sources.
forgot to mention, i am using online Sharepoint where i upload the dataset and then refresh the dataset in power-bi Datasets tab, the data set will be in the xlsx format in Sharepoint( which i think is supported by powerbi).