Put a valid, trusted cert on that server and assign the IIS services to it via the Exchange mgmt tools or set the autodiscover on it to $null
or even better:
Set-ClientAccessService –Identity 2016Server -AutoDiscoverServiceInternalUri $null
then move the arbitration mailboxes to the new server after you have moved all the remaining mailboxes to 365
get-mailbox -arbitration | new-moverequest -targetDB <2016DB>
Then remove the hybrid config IF you do not want to be in Hybrid!
https://video2.skills-academy.com/en-us/exchange/decommission-on-premises-exchange#scenario-two
FYI:
For that error, you have a send connector that has that server as a source server.
Go into EAC and remove it or use Powershell
Using EAC under Mail Flow/ Send Connectors. Remove the server there from that send connector