@Paul Rarey Hi Paul,
I am able to reproduce your issue. (See screenshot below)
As you are using Microsoft Graph Explorer to add the schema extension, the application id of the Graph Explorer is being used to add as the owner of schema extension which is not allowed as Graph Explorer application is managed by Microsoft and signed in user need to owner of the application for this call to work. Please refer to the documentation. (See extract from the referred documentation)
In order to fix this you need to pass the "Owner" property to JSON payload while making the Graph API call. So, first register an application in AAD and pass the application id to POST like below -