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We provide a performance evaluation of orthogonal time frequency space (OTFS) modulation in cell-free massive MIMO (multiple-input multiple-output) systems. By leveraging the inherent sparsity of the delay-Doppler (DD) representation of time-varying channels, we apply the embedded pilot-aided channel estimation method with reduced guard intervals and derive the minimum mean-square error estimate of the channel gains from received uplink pilots at the access points (APs). Each AP applies conjugate beamforming to transmit data to the users. We derive a closed-form expression for the individual user downlink throughput as a function of the numbers of APs, users and DD channel estimate parameters. We compare the OTFS performance with that of orthogonal frequency division multiplexing (OFDM) at high-mobility conditions. Our findings reveal that with uncorrelated shadowing, cell-free massive MIMO with OTFS modulation achieves up to 35% gain in 95%-likely peruser throughput, compared with the OFDM counterpart. Finally, the increase in the per user throughput is more pronounced at the median rates over the correlated shadowing scenarios.