When configuring entities for a WS-Federation Partnership, it is important to understand that entities for use in this configuration can only be configured with a SAML 1.1 token type, or they will not appear in the drop-down list for a partnership configuration.
Release: 12.8.x
Component: SM AdminUI and WS-Fed
When requesting entity information from your partner for use in a WS-Federation partnership, confirm that they are generating metadata with a SAML 1.1 token type.
If the metadata is generated with a SAML 2.0 token type, it will not appear in list of entities available for use in the WS-Federation partnership.
WSFED RP Entity with SAML 2.0 Token Type Not Supported (167916)
The Administrative UI lets you configure a local WSFED RP entity with a SAML 2.0 token type. However, when you create a WSFED RP-to-IP partnership, you cannot select this RP entity then proceed with the partnership configuration.
The WSFED RP-to-IP partnership does not support the RP entity with the SAML 2.0 token type.
Ref: Known Issues for Federation