I did some tests again and there is certainly something wrong. In 2025, whatever option you select, the result will be the same because the numbers are used instead of the profile.
The dialogs are different between 2024 and 2025 when Profile warnings are checked in the Color Settings.
Embedding an Adobe RGB image in an sRGB Illustrator 2025 document gives a different result when compared with an Illustrator 2024 document.
When the warnings for Profile mismatches are checked in the Color Settings (which they are not default), the user has a choice.
When embedding in 2024 the default is “Convert” (which tries to keep the color appearance and the result will look more or less the same).
When embedding in 2024 with the “Don't convert (preserve color numbers)” option (the color appearance will change visibly).
When embedding in 2025 the default is: “Use the embedded profile” (which will change the color appearance visibly).
When the option “Discard the embedded profile (don't color manage)” is chosen, the result is the same as the Use the embedded profile option (it also will change the color appearance visibly).
When the warnings for Profile mismatches are turned off in the Color Settings (which are off by default), the user has no choice and will see the color change in 2025 because the numbers are used instead of the profile.
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