It was common knowledge nearby that anyone who came in and pronounced it "ver-sai" was from out of town. Because everyone living there called it "ver-sails".
I use this as an example of how if anyone gets to decide how something is pronounced, it's the people who live there. The city is simply called "ver-sails" and that's all there is to it.
It is not "wrong", anymore than pronouncing it as you likely say "karate" is not more wrong than "ka-ra-te" (the japanese pronunciation) or that the japanese prounciation of the english word "sweater" being "su-we-ta" is wrong. Borrowed word pronunciation is entirely up to the user.