Hi, Veronica -
What are you seeing in the published module on the LMS? Does it just not display the Storyline block or is the upload to your LMS failing?
The Storyline interaction won't report anything to your LMS. The embed is similar to a video embed. So no interaction data or completion will be sent and no state or progress maintenance can be passed back into the Storyline block. The current feature will only embed the media, but will not include not the tracking behaviors from Storyline in your Rise publish.
It may be possible, if you're comfortable hacking in a Javascript workaround, to have Storyline trigger communication through Rise using custom Javascript triggers in Storyline. I'd be careful with this as Rise could change the functions / function requirements in the future.