Expectected functionality.
Once cycled you would receive a card from cycling then Oketra's Attendent would go to the graveyard creating an Embalm gem.
Observed behavior.
Once cycled an embalm gem is created but it disappears and you receive no card from cycling. Based on this it looks like Oketra's Attendent is going to the graveyard which creates the gem but then it is exiled removing the gem. I'm not sure why cycling is not providing a card.