Fabric Admin Portal Settings for Direct Lake XMLA

Answer Correct answer: A, D, E — Enable Allow XMLA Endpoints in Tenant settings, set XMLA Endpoint to Read Write in Capacity settings, and enable Users can create Fabric items in Tenant settings.

You have a Fabric tenant that contains a workspace named Workspace1. Workspace1 is assigned to a Fabric capacity. You need to recommend a solution to provide users with the ability to create and publish custom Direct Lake semantic models by using external tools. The solution must follow the principle of least privilege. Which three actions in the Fabric Admin portal should you include in the recommendation? Each correct answer presents part of the solution. NOTE: Each correct answer is worth one point.

  1. From the Tenant settings, set Allow XMLA Endpoints and Analyze in Excel with on-premises datasets to Enabled. Correct Answer
  2. From the Tenant settings, set Allow Azure Active Directory guest users to access Microsoft Fabric to Enabled.
  3. From the Tenant settings, select Users can edit data model in the Power BI service.
  4. From the Capacity settings, set XMLA Endpoint to Read Write. Correct Answer
  5. From the Tenant settings, set Users can create Fabric items to Enabled. Correct Answer

Community Votes

ADE
100%

100% of anonymous learners picked answer ADE. Votes are pick records left by other test-takers — they are not the verified answer.

Community Insight

The question tests the specific prerequisites for using external tools with Direct Lake: enabling the XMLA endpoint at both tenant and capacity levels, plus allowing item creation. The common trap is selecting 'Edit data models in Power BI service', which explicitly excludes Direct Lake.

To allow external tools to create and publish custom Direct Lake semantic models with least privilege, you must enable tenant-level XMLA access, capacity-level Read/Write XMLA endpoints, and user creation permissions. This configuration ensures secure model management via external clients like Tabular Editor.

Candidates often select option C ('Users can edit data model in the Power BI service') because it sounds relevant to editing models. However, Microsoft documentation explicitly states this setting does not apply to Direct Lake semantic models or editing through XMLA/APIs.

Community Discussion (22 comments)

sraakesh95 👍 30
D - The XMLA endpoint needs to be enabled from the capacity settings as it is crucial for allowing external tools to only read, but also, publish and manage custom Direct Lake semantic models. A - Again from Tenant settings, we need to enable XMLA endpoints ; This is to ensure that external tools interact with the data models as and when necessary within the tenant's workspace ; The analyze in excel is just complimentary to this setting in Fabric and is irrelevant E - Sets appropriate permissions to users by allowing them to edit models and publish them as when required abiding by the principle of least privilege. B&C have concerns with the principle of least privilege and security concerns while publishing to the Web
282b85d 👍 11 Selected: ADE
A. Enabling XMLA Endpoints is crucial because it allows external tools (like SQL Server Management Studio, Tabular Editor, or any other tool that can connect via XMLA) to connect to Power BI datasets. This is essential for users who need to create, modify, or manage semantic models using these external tools. D. Setting the XMLA Endpoint to Read Write allows users not only to read the data from the Power BI service but also to write back to it. This is necessary for users to create and publish custom Direct Lake semantic models. Without write access, users would be unable to publish or update their models, which is a critical part of managing semantic models. E. Enabling users to create Fabric items is essential because it allows users to create new Power BI datasets, dataflows, and other necessary components within the workspace.
NRezgui 👍 2 Selected: ADE
D - The XMLA endpoint needs to be enabled from the capacity settings as it is crucial for allowing external tools to only read, but also, publish and manage custom Direct Lake semantic models.
Rakesh16 👍 2 Selected: ADE
ADE is the answer
jass007_k 👍 1
A- From tenant settings, setting allow XMLA endpoints and Analyze in excel with on-premises datasets to enabled D- From capacity settings, set XMLA endpoint to ReadWrite E- From Tenant settings, setUsers can create fabric items within workspace
nyoike 👍 2 Selected: ADE
C is not correct for those voting for it. Below is the (verbatim) description for the "Users can edit data models in the Power BI service (preview)" Tenant setting in the Admin portal. "Turn on this setting to allow users to edit data models in the service. This setting DOESN'T apply to DirectLake semantic models or editing a semantic model through an API or XMLA endpoint." More information on that Tenant setting from the link below .... https://learn.microsoft.com/en-us/power-bi/transform-model/service-edit-data-models#enabling-data-model-editing-in-the-admin-portal
Ahmadpbi 👍 1
C is wrong for 2 reasons, this setting is not in the tenant, it is in workspace settings. The second reason is that this feature is still in preview till date of my comment.
Subhamssg13 👍 2
ADE OPTION C should not be consider as : Users can edit data models in the Power BI service (preview) Enabled for the entire organization Turn on this setting to allow users to edit data models in the service. This setting doesn't apply to DirectLake semantic models or editing a semantic model through an API or XMLA endpoint.
rlo123 👍 2
ADE B. From the Tenant settings, set Allow Azure Active Directory guest users to access Microsoft Fabric to Enabled. This focuses on external user access, which might not be necessary for your scenario. C. From the Tenant settings, select Users can edit data model in the Power BI service. This primarily affects in-browser editing of Power BI models and is less relevant to creating custom models with external tools. F. From the Tenant settings, enable Publish to Web. This is unrelated to external tool development and is concerned with sharing Power BI reports publicly.
stilferx 👍 2 Selected: ADE
A -> D -> E
hello2tomoki 👍 1 Selected: ACD
A. From the Tenant settings, set Allow XMLA Endpoints and Analyze in Excel with on-premises datasets to Enabled (https://learn.microsoft.com/en-us/fabric/admin/service-admin-portal-integration) . C. From the Tenant settings, select Users can edit data model in the Power BI service (https://learn.microsoft.com/en-us/fabric/admin/service-admin-portal-data-model) . D. From the Capacity settings, set XMLA Endpoint to Read Write (https://learn.microsoft.com/en-us/power-bi/enterprise/service-premium-connect-tools) .
PazaBIandData 👍 2 Selected: ADE
AD for sure https://learn.microsoft.com/en-us/power-bi/enterprise/service-premium-connect-tools#security
a61d298 👍 2
A Allow XMLA Endpoints and Analyze in Excel with on-premises datasets: From the Tenant settings, set Allow XMLA Endpoints and Analyze in Excel with on-premises datasets to Enabled. This allows users to interact with the dataset via XMLA endpoints and analyze data using Excel. D. Set XMLA Endpoint to Read Write: In the Capacity settings, configure the XMLA Endpoint to Read Write. This ensures that users have the necessary permissions to create and modify semantic models through external tools. E Enable Users to Create Fabric Items: From the Tenant settings, set Users can create Fabric items to Enabled. This grants users the ability to create custom semantic models within the Fabric workspace.
kelvin3105 👍 3 Selected: ADE
sraakesh95 Highly Voted 1 month, 3 weeks ago D - The XMLA endpoint needs to be enabled from the capacity settings as it is crucial for allowing external tools to only read, but also, publish and manage custom Direct Lake semantic models. A - Again from Tenant settings, we need to enable XMLA endpoints ; This is to ensure that external tools interact with the data models as and when necessary within the tenant's workspace ; The analyze in excel is just complimentary to this setting in Fabric and is irrelevant E - Sets appropriate permissions to users by allowing them to edit models and publish them as when required abiding by the principle of least privilege. B&C have concerns with the principle of least privilege and security concerns while publishing to the Web upvoted 8 times JUST TO VOTE GUYS
PCCCCCC 👍 1 Selected: ADE
Not C : https://learn.microsoft.com/en-us/power-bi/transform-model/service-edit-data-models#enabling-data-model-editing-in-the-admin-portal
a_51 👍 1 Selected: ADE
ADE seems most appropriate
azure_bimonster 👍 2 Selected: ADE
Most probably ADE, I put E because users have the necessary permissions to create custom Direct Lake semantic models within the Fabric workspace.
azure_bimonster 👍 3 Selected: AD
ADF seems correct answer
metiii 👍 3 Selected: ADE
It's ADE from https://learn.microsoft.com/en-us/fabric/admin/tenant-settings-index A: We need this to connect to XMLA endpoint. D: Obviously this is required for Read Write access throufg XMLA endpoint. E: This is required to create a direct lake semantic model which is a fabrci item. C:from link above: "This setting doesn't apply to DirectLake semantic models or editing a semantic model through an API or XMLA endpoint" B: This setting allows guest users to access our tenant, it's Irrelevant. F: This is Irrelevant too, it allows us to publish a report to web.
Felgas 👍 1
Answer is ADF Can't be C because the portal says "This setting doesn't apply to DirectLake semantic models or editing a semantic model through an API or XMLA endpoint"
TashaP 👍 2
Answer is ACD
Momoanwar 👍 1 Selected: ACD
Correct ACD B an d for external users E to enable fabric

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Expert Analysis

Why the Answer Is Correct

To enable external tools (like SSMS or Tabular Editor) to manage Direct Lake models, three distinct settings are required. First, Allow XMLA Endpoints (Option A) must be enabled in Tenant Settings to permit any XMLA traffic from external clients. Second, XMLA Endpoint (Option D) must be set to Read Write in Capacity Settings; without this, even if enabled, users would only have read-only access, preventing publishing. Third, Users can create Fabric items (Option E) must be enabled in Tenant Settings because creating a new semantic model constitutes creating a new Fabric item.

Why the Other Options Are Wrong

Option B allows guest users access, which violates the principle of least privilege as it broadens access beyond necessary internal users. Option C allows editing within the Power BI Service browser interface, but the documentation explicitly states: "This setting doesn't apply to DirectLake semantic models or editing a semantic model through an API or XMLA endpoint." Therefore, it does not solve the requirement for external tool usage.

Community Comment Notes

Community consensus strongly supports ADE. Commenters note that Option C is incorrect because the setting description explicitly excludes Direct Lake. Several users reference official Microsoft Learn links confirming that XMLA Read/Write is mandatory for publishing and that 'Create Fabric items' is needed to generate new models externally.

Official Reference

Exam Strategy

Always distinguish between 'editing in the service' and 'editing via XMLA'. For Direct Lake, rely on XMLA settings. Remember that 'creating' a model requires 'create item' permissions, while 'modifying' requires 'read/write' XMLA access.

Frequently Asked Questions

Why is Option C wrong for Direct Lake models?

The 'Users can edit data model in the Power BI service' setting explicitly excludes Direct Lake models and XMLA-based editing according to Microsoft documentation.

Why do we need both Tenant and Capacity XMLA settings?

Tenant settings (A) enable the feature globally, while Capacity settings (D) define the permission level (Read/Write). Both are required for external tools to publish changes.

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