Desktop applications only support the oauth_callback value 'oob'/oauth/request_token
Fill up the "Callback URL" field in your Twitter settings dev account.
In addition to what the other answer says...
I kept getting an error when trying to fill up the Callback URL in the Twitter dev console. I was trying to enter http://localhost:4000, but it was giving me errors. If you need to need to use localhost, you can use http://127.0.0.1:4000 instead, and Twitter accepts that.
(Maybe obvious to some, but took me a little while to figure it out.)
This is an old question, but I ran into this error today, and the thing I noticed is that NEW Twitter applications can be saved WITHOUT a callback URL, but as soon as you save your app with a callback URL, Twitter won't let you save it -- it will revert to the last URL you had. In our case, it didn't matter since our OAuth flow supplies the callback URL, but something on Twitter's side of things REQUIRES that there be a callback URL (ANY callback URL). So in our case, this error cropped up only in dev environments that had a new (and unused) Twitter application associated with them.