The paper establishes a methodology to overcome the difficulty of dynamic frame alignment and system separation in impedance modeling of ac grids, and thereby enables impedance-based whole-system modeling of generator-converter composite power systems. The methodology is based on a frame-dynamics-embedding transformation via an intermediary steady frame between local and global frames, which yields a locally defined impedance model for each generator or converter that does not rely on a global frame but retains all frame dynamics. The individual impedance model can then be readily combined into a whole-system model even for meshed networks via the proposed closed-loop formulation without network separation. Compared to start-of-the-art impedance-based models, the proposed method retains both frame dynamics and scalability, and is generally applicable to various network topologies (meshed, radial, etc) and combinations of machines (generators, motors, converters, etc). The methodology is used to analyze the dynamic interaction between generators and converters in a composite grid, which yields important findings and potential solutions for unstable oscillation caused by PLL-swing coupling in low-inertia grids.