Direct Quarto to embed-resources: using YAML

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See about a similar question in

Quarto not rendering embed-resources with quarto_render()

This is quite an old installation now, as the latest in Quarto 1.2 and next is 1.3 current pre-release and soon to be out. Quarto bundles Pandoc in a version, and it bundles Pandoc 2.18 embed-resource is from Pandoc 2.19 https://pandoc.org/releases.html#pandoc-2.19-2022-08-03 and not so also not supported in Quarto before v1.1.x

You should check your Quarto version and verify it is recent enough to support this option.

Also

@Harlananelson

Rendering:
  embed-resources: true

Rendering is not a valid YAML field for Quarto I believe