Declarations from extensions cannot be overridden yet in Swift 4

But in the above scenario, I am not overriding the method isValid() in an extension.

isValid gets declared in an extension.

The error pretty much says that if a function is declared this way, it cannot be overridden.

The statement is valid for both from an extension and in an extension.

You can override declarations from extensions as long as you @objc the protocol. In Swift 4.2:

class BaseClass {}
class SubclassOfBaseClass: BaseClass {}

@objc protocol IsValidable {
    func isValid() -> Bool
}

extension BaseClass: IsValidable {
    func isValid() -> Bool { return false }
}

extension SubclassOfBaseClass {
    override func isValid() -> Bool { return !super.isValid() }
}

BaseClass().isValid()           // -> false
SubclassOfBaseClass().isValid() // -> true