An extensive line of work studies fairness interventions for network embeddings, but less is known about their baseline behavior. In this work, we ask: how do baseline embeddings (without fairness interventions) produce disparate effects at the representation level? We analyze the asymptotic behavior of low-dimensional embeddings on stochastic block model (SBM) graphs, which encode both homophily and group structure. We characterize exact conditions under which embeddings cause information loss, showing that the amount of information loss depends directly on the graph's density and assortativity. Notably, very different graphs can produce identical embeddings in the limit, and this non-invertibility disproportionately affects smaller and sparser communities. As a result, simple downstream tasks, such as link prediction, introduce higher error rates for these communities, helping explain disparities widely observed in practice.