Did you figure out the problem and get this to work?
I added a few albums recently and can’t get the embedded album art to work for about half the new albums, which is annoying when some are a deluxe album with a different cover.
I switched it to the (old?) Plex Media Scanner and said only to use local files and that at least gave me NO album art for the ones that I was having trouble with. Going through and looking what makes a difference between the group that works and the group that doesn’t and I don’t notice a pattern except that it doesn’t like Michael Buble and Beyonce because I have them with the accents in the artist names so they have the accents in the folder names as well.
Sizes of the album art varies from 355x355 to 1500x1500, 6k to 2MB, labeled “front cover” and labeled “unspecified”. There’s some of those in each group so I don’t see a pattern with them.
I keep trying different stuff and then testing by doing the Plex Dance or just refreshing meta data and nothing works unless I switch to the Plex Music scanner and then it brings its old wrong art back.