'Could not Insert Object' error trying to embed a PDF in an Inventor drawing

In Inventor you get the following error when in a drawing trying to embed a PDF.

Autodesk Inventor Professional - Create Container Item "Could not Insert Object"

 

In an Inventor DWG or IDW you're on the Manage tab using the Insert Object command with the 'Link' option unselected. 

If you select 'Link' the embedding works but you've got a linked PDF and you can't break the link otherwise the PDF disappears.

Here's a new knowledge base article Autodesk created to help.  At the end see the link to the Microsoft fix that gets rid of the error.