Symptoms

The issue that was occurring was whenever a user would try to open up a SP embedded form they would receive the following error message:

"The page you're looking for doesn't exist".
 

Diagnoses

The issue was reproducible by doing the following:

1. On the main SharePoint landing page select the "PAGE" tab on the main SharePoint ribbon.
2. Edit the page.
3. Click the "INSERT" tab, select "Picture" then "From Computer".
4. Select the wanted image, click Okay, and resize the image as necessary.
5. Click on the image, click the "INSERT" tab, find the "Link" option and select "From Address".
6. In the Insert Hyperlink window, configure the link using a New Form URL from a list. Do not utilize this from the Runtime URL of the form.
7. Insert this URL into the "Address" text box of the hyperlink configuration.
8. Click OK, save the page.

The image can now be clicked to open the URL, when this is done the previously mentioned error occurs.
 

Resolution

This issue has been discovered to be a SharePoint limitation. The reason for this is when creating a link in SharePoint there is a limitation to how many characters are allowed in the URL. The current limitation appears to be 256 characters, more information can be found in the following article:

https://technet.microsoft.com/en-us/library/Ff919564(v=office.14).aspx

There is a potential workaround for this issue and can be done by doing the following:

1. Using the same steps as above configure the image to open a New Form using a link.
2. Instead of injecting the New Form's URL into the Address section, first access the following site: http://tinyurl.com/
3. Copy the URL for the New Form, place the URL into the URL shortening text box, then click the option to shorten the URL.
4. After being redirected to the newly shortened URL, copy said URL.
5. In the Address section of the hyperlink configuration, paste the newly shortened URL into this text box.
6. Click OK, Save the page.

After this has been configured, the image can be clicked and the New Form will open and will be embedded on SharePoint as expected.