Answer: From the Tenant settings, set Allow XMLA Endpoints and Analyze in Excel with on-premises datasets to Enabled., From the Capacity settings, set XMLA Endpoint to Read Write., From the Tenant settings, set Users can create Fabric items to Enabled.

The question requires enabling users to create and publish custom Direct Lake semantic models using external tools while following the principle of least privilege. Option A (Enable XMLA Endpoints from Tenant settings) is necessary to allow external tools to connect to Power BI datasets via XMLA. Option D (Set XMLA Endpoint to Read Write from Capacity settings) is crucial for granting write permissions, enabling users to publish and manage semantic models. Option E (Enable 'Users can create Fabric items' from Tenant settings) allows users to create necessary components like datasets and dataflows within the workspace, aligning with least privilege by providing only the required permissions. Options B, C, and F are incorrect: B grants unnecessary access to guest users, C does not apply to Direct Lake models or XMLA endpoints (as per Microsoft documentation), and F enables public sharing, which is irrelevant and poses security risks.

Author: LeetQuiz Editorial Team