I think they do work for some, but for some people they don't appear. This may be as a result of site permissions or ad blockers.
Shouldn’t be adblockers. I don’t use adblockers as a princip. I like content creators to get their dole.
I do use adblockers because I don't like adverts, but there are some that do break things. I use Malwarebytes' one which works on some sites although I plan to replace it in the future, and instead of blocking adverts on YouTube (before the crackdown) it blocked the skip button. Recently I tried Ublock origin which prevented an email extension I have from loading. Above I have embedded a video. When I posted this message it worked, but as soon as I refreshed the page it was blocked. I turned off my adblocker and it didn't change anything. However, each time I made an edit to this post it would reappear. Strange. I also tried on a different browser, firstly with the DuckDuckGo extension enabled, then disabled. Both times it didn't load.
In my case, my long-time browser of choice, Firefox, does not show embedded YT vids here and at some other sites. Switched to my second-favorite browser, Brave. Voila! Embedded videos appear again. Both browsers are loaded with blockers and other privacy-oriented add-ons. Of possible interest, I've seen a few videos that say Google has been trying to gimp Firefox for some time now. It might be that non-showing embedded videos are a consequence of that. Or not. In any case, Brave is now my primary browser, though not without some regret.
I'm using Firefox and I'm seeing the videos yet. There are some rumors about ad blockers, which probably means certain cookie settings.