It looks like you are using a production url with a sandbox application id, which will not work. You should use squareupsandbox.com... instead of squareup.com.... So I think this URL should work:
To start the OAuth flow for a sandbox account, first launch the seller test account from the Developer Dashboard. (Few days ago i was able to launch the seller test account, but now i do not find to do the same)
You do need to launch the Sandbox Seller Dashboard first, which can be found on this page: https://developer.squareup.com/apps at the bottom under Sandbox Test Accounts, you need to click “Open” and leave it open; in another tab, try the OAuth link again.