Elliott has made just four Premier League appearances since joining Villa on a season-long loan from Liverpool last year.
His only league start this season came against Fulham in September, but he was taken off at half-time and has not played in the top flight since February.
Villa had an obligation to buy Elliott for £35 million ($47 million) if the 23-year-old played 10 times in the league.
But Elliott, who starred for England’s Under-21s when they won the 2025 European Championship, is certain to return to Anfield at the end of the current campaign.
Speaking ahead of Friday’s clash with Elliott’s parent club Liverpool, Emery said: “It is something embarrassing for everyone involved in it. My apologies for Harvey Elliott are every day in my mind.
“But it is the responsibility. We have our responsibility and Liverpool have their responsibility.
“As a human and as a person, how the season has gone has been difficult.”
Liverpool boss Arne Slot confirmed that Elliott will be given the chance to impress in pre-season with the Reds before a decision is made on his future.
“It didn’t work out as he wanted it, as we wanted it and probably also how Villa wanted it, because you usually sign a player or bring him in on loan to use him,” said Slot.
“He’s contracted to us so he will be with us in the start of the season.”
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