Symptoms
The client was receiving 401 errors in two circumstances:
1) When running the registration wizard on the production environment
2) When trying to interact with Appit on the development environment
Diagnoses
1) This was an issue of the client loggin into to O365 using their onmicrosoft account which was not synced with their onPrem AD.
2) There was no trusted issuer established on the production environment.
Resolution
1) By having the client log in to the O365 environment with a synced account they were able to interact with Appit on their development instance.
2) We set up a trusted issuer on the client's SharePoint server which enabled completion of the registration wizard on the production environment.
Note: The environment for this involved an on premise SharePoint server