The following question is an attempt to revise this one into what I intended. Important revisions are shown in bold.
Are there any known examples of a compact Riemannian manifold $M$ with (possibly empty) boundary and a smooth manifold $N$ such that $\dim M = \dim N$ and no topological embeddings $M\hookrightarrow N$ exist, but for each $\varepsilon > 0$ there is a continuous map $f:M\to N$ whose fibers $f^{-1}(n)$ all have diameter $< \varepsilon$?
For example, take $N=\mathbb{R}^2$ and $M$ to be a 2-torus with an open disk removed. Does there exist a sequence $f_k: M\to \mathbb{R}^2$ of continuous maps such that $$\sup_{x\in \mathbb{R}^2} \text{diam} f_k^{-1}(x) \to 0$$ as $k\to \infty$ with respect to some fixed metric on $M$?