Wasted time and faded away, having embraced everyone (7)
I believe the answer is:
dallied
'wasted time' is the definition.
(I've seen this before)
'faded away having embraced everyone' is the wordplay.
'faded away' becomes 'died'.
'having embraced' is an insertion indicator.
'everyone' becomes 'all' (I've seen this before).
'died' placed around 'all' is 'DALLIED'.
'and' acts as a link.
(Other definitions for dallied that I've seen before include "Idled or flirted" , "Held back" , "Dialled up, having delayed" , "moved slowly" , "Hung about" .)