Your on-premises Exchange federation trust is configured to use a Microsoft account (previously known as Windows Live ID). ...

Your on-premises Exchange federation trust is configured to use a Microsoft account (previously known as Windows Live ID). In order to configure a hybrid deployment with the Hybrid Configuration wizard, you must be using a Microsoft Online Services ID.  Please delete and re-create the existing on-premises Exchange federation trust using Exchange 2010 Service Pack 1 or higher.