Closing the issue, works in the latest version.

Hammer:

Could not update the host:
  Environment with id 1123 doesn't exist or is not assigned to proper organization and/or location

JSON:

{
  "error": {
    "id": 1,
    "errors": {
      "environment_id": [
        "with id 23 doesn't exist or is not assigned to proper organization and/or location" 
      ]
    },
    "full_messages": [
      "Environment with id 23 doesn't exist or is not assigned to proper organization and/or location" 
    ]
  }
}