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I see with the Dynamics 365 December 2016 update that server-to-server authentication was introduced. Does this work with the on premise version of Dynamics 365? We would be trying to implement this with ADFS 2016. From what I can see we would need the new application user feature and I see the new fields on the systemuser entity, but I do not have the option to create an application user, nor switch to the application user form.
According to this page https://msdn.microsoft.com/en-us/library/gg309589.aspx server to server authentication was added for both online and on-premises, but this page https://msdn.microsoft.com/en-us/library/mt790168.aspx says it only applies to Dynamics 365 online.
The end goal is to be able to create a proxy server application (.Net Core 2.0) that can authenticate as an application user to access the Dynamics 365 Web Api version 8.2. Is this possible at this time?
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I don't know much about this new S2S authentication, but I think it's more of a use case where you have Azure AD and an external Dynamics instance.
If you are creating a .NET proxy app anyway, you may want to consider just using the Dynamics 365 SDK to authenticate and run commands against your Dynamics instance. Then it's just straight up .NET commands.
Maybe a bit more information about your specific use case would help?
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