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Hi @swarajhegde7 ,
I had this error a few days ago. In my case, it wasn't related to this setting at all after all. I discovered that I couldn't publish on the web reports that are connected to Power BI datasets. I could only publish reports with their own datasets.
If I answered your question, please mark my post as a solution.
Best,
I don't exactly get it. what does it mean when you say "their own dataset" and "power bi datasets". Please let me know.Thanks