Welcome to the Microsoft Q&A Platform. Thank you for reaching out & I hope you are doing well.
I suspect this is happening because the OnPrem is using an APIPA IP 169.254.14.1/32
Can you try using a different subnet range other than APIPA?
ExpressRoute scenarios such as this would require a deeper investigation, so if you have a support plan, I request you file a support ticket, else please do let us know, we will try and help you get a one-time free technical support.
Cheers,
Kapil