umarmen
to hug
To take someone in your arms as a sign of affection, as a greeting, or to comfort them.
Nach der langen Reise umarmte sie ihre Familie überglücklich.
After the long journey, she hugged her family overjoyed.

to embrace / hug
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to hug
To take someone in your arms as a sign of affection, as a greeting, or to comfort them.
Nach der langen Reise umarmte sie ihre Familie überglücklich.
After the long journey, she hugged her family overjoyed.

'Umarmen' (to embrace/hug) is an inseparable verb. The prefix 'um-' here means 'around' and always remains attached to the verb. The past participle is 'umarmt', not 'umgearmt'.
Er hat seine Mutter zum Abschied fest umarmt.
He hugged his mother tightly to say goodbye.
The verb 'umarmen' (to embrace/hug) is always transitive and requires a direct object in the accusative. You always hug or embrace 'jemanden' (someone) or 'etwas' (something).
Zur Begrüßung umarmte sie jeden Gast.
She hugged every guest as a greeting.
The figurative meaning is often used in the context of changes, new ideas, or concepts. You can recognize it because the object is not a living being, but something abstract such as 'die Zukunft' (the future), 'eine Chance' (an opportunity), or 'die Vielfalt' (diversity).
Viele Künstler umarmen die Möglichkeiten der künstlichen Intelligenz.
Many artists embrace the possibilities of artificial intelligence.
In the meaning of 'umgeben' (to surround) or 'umschließen' (to enclose), 'umarmen' (to embrace/surround) is mainly used in literature or poetic language. In normal everyday language, you would be more likely to use 'umgeben' (to surround).
Dichter Nebel umarmte die alten Bäume im Wald.
Thick fog surrounded the old trees in the forest.
to accept / assume
'annehmen' and 'umarmen' can both express accepting an idea or a change. 'annehmen' is the normal and neutral word for this. 'umarmen' is figurative here: it sounds stronger and means taking something up openly and positively. In everyday use, 'umarmen' usually means physically hugging someone. That is why it can be confusing. For simple agreement or acceptance, you usually use 'annehmen'; 'umarmen' fits better in figurative or slightly more modern formulations.

Die Firma umarmt die neue Technik und arbeitet jetzt fast nur noch digital.
The company embraces the new technology and now works almost entirely digitally.
Nach der Besprechung nimmt das Team den neuen Plan an.
After the meeting, the team accepts the new plan.