I am getting following error while trying to debug a custom workflow in Dynamics 365 online (sandbox environment)

The error message says 

Unhandled Exception: System.ServiceModel.FaultException`1[[Microsoft.Xrm.Sdk.OrganizationServiceFault, Microsoft.Xrm.Sdk, Version=9.0.0.0, Culture=neutral, PublicKeyToken=31bf3856ad364e35]]: This workflow cannot be created, updated or published because it was created outside the Microsoft Dynamics 365 Web application. Your organization does not allow this type of workflow.

Is this means I need to allow something in organization level to enable debug custom workflows?

I am able to run the workflow in the environment.

After this error the workflow selected for debug is automatically disabled.