Currently you are able to allow a user to select from multiple view modes when embedding media; however, this list when embedding is not respecting if a view mode is enabled for that particular type.
For example: I have an Image media type and a Video media type, both have "Embedded" displays but only Image has a "Thumbnail" Display. Both displays are allowed in my CKEditor profile. When adding a video, it allows me to select "Thumbnail" which is not enabled, causing the Video to fallback to the "Default" display.
This is not intuitive and confusing for users.