Happy to help, @Gavlarc ,
By " support inline deployment scripts within ARM templates" Are you asking if BP supports running ARM template with an embedded deployment script?
AFAIK, Blueprint supports this since its just passing the ARM template to Resource Manager as actualy deployment.
If this is a new sub, then the deployment scripts require a user-assigned managed identity with the contributor's role on the target management scope.
Also curious about the JSON formatitng errors you called out. Are there any details that could shine some light on the failure.
If you havent seen these already, here are some publicly documented troubleshooting steps for your reference.
Looking fwd to your reply.