The formal ending of the West African nation's parliament came after Embalo said last week that there was an attempt to overthrow the government.
Clashes between two army factions broke out in Bissau on Thursday night and continued on Friday after national guard soldiers freed an opposition minister who had been detained in a corruption investigation.
Coups and unrest have been commonplace in Guinea-Bissau since it gained independence from Portugal in 1974.
Embalo also dissolved Guinea-Bissau's parliament in May 2022 after he accused some authorities of corruption and other issues.