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User mailboxes that are directly created in 365 cannot be assigned permissions to mailboxes on-premise
User mailboxes that are directly created in 365 cannot be assigned permissions to mailboxes on-premise using the Add-Mailboxfolderpermission command. It reports the following error for the on-premise user "The specified mailbox identity does not exist."
Microsoft 365Exchange
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If you create a user and mailbox directly in O365, on premise AD knows nothing about it, so it has problems setting permissions to an on-premise mailbox to a "stranger". This includes browsing the list of on-premise mailboxes.
You need to create a user and mailbox on premise first, sync it to O365 and then you can move the mailbox to O365.
Hybrid is not the same as having two exchange servers, but more having a copy of users with the same SID on O365.