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How to setup OAuth authentication to connect to Dyn365 v9.0 Onprem IFD WebAPI?

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In a Dynamics 365 online project, it would be sufficient to setup an Azure AD App Registration and link an Application User to this application ID.
What I read in the documentation for an IFD project, is that you would setup OAuth also for this type of projects. However, it is not specified how.

As far as I can see, there is no way to use Application User in an on premise project?
It is possible to try and create one, but the link with the Azure AD app registration object is not being made, if we first create an Azure AD app registration.

Since we have ADFS 2016 (4.0) in place, client credentials flow (s2s) should now be possible. But, I do not know how to configure it for Dynamics CRM on premise access.

Would the alternative then be to setup a Authorization Code flow, which is also possible in earlier versions of ADFS?

Kind regards

Kim

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