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I looked for a list of projects currently embedding Servo, or planning to, but didn't find one.

Is any software embedding it now?

Servo is not production ready yet. We don't even know how may years it will take for 1.0. So no software would use it for now.

Plenty of pre-production software is built with pre-production dependencies.

Does it not work for a useful subset of HTML/CSS?

Kinda hard when they don't even tell you how.