I had seen a few posts in the past year from people experiencing trouble when trying to embed YouTube videos into Storyline 2, but I did not see any resolution of the issue.
When I try to embed videos using the Embed code, I receive the error, "A video cannot be inserted from this embed code. Verify that the embed code is correct and then try again."
So I do that very thing, I verify that the embed code is correct by taking that exact same code and embed it into a PPT slide and it works fine.
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The workaround is to use a webobject instead, as described here.
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