Embed gems bug messed up

I have gems and open slots but will not let me embed them. trying to say I need a obsidian for relic instead of a emerald...jacked up just let me embed a diamond to a relic and says + 0 hp

I had the same thing. I upgraded a gear, opened another slot for embed, and had the appropriate chips but it kept telling me i needed the chip i was trying to put in but it didn't recognize it for some strange reason. It was obsidian chip.

I know this is an old post, but the glitch still exists. The cause of the glitch appears to be that your inventory is full. Remove some stuff from your inventory and your chips will be available to embed.
Hope this helps.