The change of originally only Explorers/War Chiefs/Monks and Chasquis could build the Native Embassy in the Definitive Edition was introduced to accommodate the Dutch, who have more buildings than can be displayed on the Settler construction panel. With update 23511, where the Native Embassy can only be built by Villagers once again, the Dutch can only build Native Embassy using the Envoy.
Establishing an embassy is more than simply erecting a building. An embassy represents one civilization or country formally respecting and acknowledging the legitimacy of another. Embassies serve as powerful symbols in the overall context of how societies conduct business, trade, and sometimes war.