The AAD-UserReadUsingObjectId technical profile will try and read some specified claims from Azure AD using the object ID. I am assuming the user you are signing in with does not exist in Azure, but only exists in the organizational AD, so even if you return the object ID from the org AD, it will still give you an error when it tries to find that user in the Azure AD. I removed that step from my user journey and directly returned the claims from the organizational directory. I also added a default value for the objectId claim if the SAML response does not return it.
<OutputClaim ClaimTypeReferenceId="objectid" PartnerClaimType="objectid" DefaultValue="ad-none"/>
My user journey:
<UserJourney Id="SignIn-ADFS">
<OrchestrationSteps>
<OrchestrationStep Order="1" Type="CombinedSignInAndSignUp" ContentDefinitionReferenceId="api.signuporsignin">
<ClaimsProviderSelections>
<ClaimsProviderSelection ValidationClaimsExchangeId="LocalAccountSigninEmailExchange" />
<ClaimsProviderSelection TargetClaimsExchangeId="TestExchange" />
</ClaimsProviderSelections>
<ClaimsExchanges>
<ClaimsExchange Id="LocalAccountSigninEmailExchange" TechnicalProfileReferenceId="SelfAsserted-LocalAccountSignin-Email" />
</ClaimsExchanges>
</OrchestrationStep>
<OrchestrationStep Order="2" Type="ClaimsExchange">
<Preconditions>
<Precondition Type="ClaimsExist" ExecuteActionsIf="true">
<Value>objectId</Value>
<Action>SkipThisOrchestrationStep</Action>
</Precondition>
</Preconditions>
<ClaimsExchanges>
<ClaimsExchange Id="SignUpWithLogonEmailExchange" TechnicalProfileReferenceId="LocalAccountSignUpWithLogonEmail" />
<ClaimsExchange Id="TestExchange" TechnicalProfileReferenceId="macrohouse-SAML2" />
</ClaimsExchanges>
</OrchestrationStep>
<OrchestrationStep Order="3" Type="SendClaims" CpimIssuerTechnicalProfileReferenceId="JwtIssuer" />
</OrchestrationSteps>
<ClientDefinition ReferenceId="DefaultWeb" />
</UserJourney>