Currently, I’m using the Client/Application secret (OAuth2) option and it’s been working well. However, the server team at my workplace is asking me to strongly consider using a certificate. I believe the Client/certificate (OAuth2) authentication is not possible to do through the Microsoft Authentication node.
I hope that a Client/certificate (OAuth2) authentication can be added in the future. The certificate option is described on this page: Embed Power BI content in an embedded analytics application with service principal and an application secret - Power BI | Microsoft Learn