Power bi embedded issue

Hi, I'm having difficulty setting up Power BI Embedded sample app for a dashboard. I used the sample app to upload the PBIX file, which has only two tables imported from Azure SQL using Direct Query. I provisioned the Workspace Collection and created workspace, and updated the web.config with relevant information. When I run the Power BI embedded sample web application, it shows the dashboard and correct titles for the visuals. However, it doesn't render the visuals (technical details show 401 error). I have specified the connection string using the sample app. When I publish the PBIX file to powerbi.com, I need to manually enter the credentials when viewing the dashboard. Has anyone faced a similar problem? Please help.