item within versionoverrides invalid 'webapplicationinfo' on Exchange on prem with Azure AD Hybrid

Solution 1:

Exchange 2016 Cumulative Update 3 (CU3), released in September 2016 for Exchange on-premises servers, adds support for REST API integration with Microsoft 365. If your app uses v1.0 of the Mail, Calendar, or Contacts API, you will now also find a seamless authentication and application experience in hybrid deployments, regardless of whether the mailbox is on-premises or in the cloud, provided that the deployment meets specific requirements.

See Use REST APIs to access mailboxes in Exchange hybrid deployments (preview) for more information.