Root cause of this is that the "Convert Embed Tags" was not enabled in the ACP -> System Core -> Quota Settings section for the quota.
"Active Text Formatters" is a new feature in Jamroom 5.1.0 that allows modules to provide text formatters (i.e. bbcode, embedding, etc.) that can then be used throughout the system without having to modify templates.
This let's a module developer just create their templates without having to add smarty modifiers for anything else that might be active in the system. As long as they just use the jrCore_format_string modifier - i.e.
{$item.blog_text|jrCore_format_string:$item.profile_quota_id}
The system will handle all text formatting that is active in the system.
Hope this helps!
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Brian Johnson
Founder and Lead Developer - Jamroom
https://www.jamroom.net