It seems some of the LTI Apps require either a hosted account or a valid registration of self-hosted instance. I cannot find a way to register our self-hosted instance with Instructure. We are having an issue getting the commons to work on Self-Hosted Instance as well... And I believe it is the same issue. In response to your question, though: We are creating our own Office 365 LTI App. It seems the only way to get one working in a self-hosted environment. I reached out to both, Instructure and Microsoft regarding this. Both said they did not create the App and that I needed to reach out to the group that created the App. So I went out looking for the website of the people that developed the LTI App... I found it, but there was no way to communicate with them. So I looked up Microsoft's documentation on OneDrive LTI. I am almost done creating ours. I have it working everywhere, but I'm still tweaking the styling.
I am currently working with Instructure Support to try and get our Commons working. It seems they used to support self-hosted accounts, but something has change over the last several months that broke the automatic setup. I believe the self-hosted instance is supposed to automatically register with Instructure during the setup of the App. But it is not working. Apparently, it used to work, because there are several self-hosted instances out there that set it up a year or two ago and it is still working. Hopefully, Support gets back to us soon.