This is expected behavior in SRM 8.3. When integrating Site Recovery Manager with HCX, it is not possible to use vSphere Replication in the same Site Recovery Manager instance.
Resolution
To resolve this, follow the steps below:
Disconnect the SRM pairing. There is no need to disconnect the VR pairing.
Unregister the on-prem srm-va from vCenter and LookupService (from https://<srm-appliance>:5480)
Delete the current on-prem srm-va.
Provision and configure again new on-prem srm-va, but use HCX ovf property with value false.