Loss of Pixels on Edge of Pattern Repeat

Yes it us hard to know what your are doing from what you wrote.

A pattern  is like a pixel layer  its has a rectangle bounds some number of pixel wide and some number of pixels high.  In that rectangle area are the pattern pixels. Pixels can have any value be any color have any opacity or empty filled with nothing.  A pattern can be any shape within its rectangle bounds.   Patterns are not scaled during a pattern fill the Pattern is tiles into the selected areas bounds the selected area can be any shape the pattern fill will be tiles to the selections bounds from the top left corner. Pattern pixels outside the selection shape will be not be changed the fill is constrained to the selection. 

Please post meaningful screenshots to clarify what you are talking about.

When I place the embedded original file there is a transparency on the outter edge of pixels.

Are you saying you placed the 1500px x 1500px image as a Smart Object and scaled it down to 170px x 170px?

If so then naturally it will be resampled.

A Pattern Layer with a Pattern without transparency should not result in semi-transparent pixels along the edges of the individual pattern squares.

Pattern are defined fixed in size x-pixels wide and y-pixels high.  So you patters and your document have matching aspect ratios.  Is your documents 170x170units and resolution an even multiple of your defined pattern? If not the fit will not be perfect  at the document borders the matchup will be off. It is just like tiling your bathroom floor. Have the right match no tile need to be cut. It is why I chose 8" tiles when  I tiled my kitchen walls the to were 2', 2', 6' and 80" all multiple of 8" no tile cutting would be needed Tiles are actually a little smaller then 8" to allow the use of grout. with a little wiggle room.