How do I get PM to embed the IPTC information and keywords into jpg and cr2 files vs creating sidecar files?
PM will never create XMP sidecar files for JPEGs, TIFF, DNG, or PSD, no matter what settings you choose. As for embedding in your CR2 files, you need to tell PM to embed IPTC and/or IPTC4XMP in your TIFF-based RAW file settings (near the bottom of the IPTC/XMP tab of the Preferences dialog.)
-Kirk