The issue occurs when a user will be logged into OWA and is connecting to our on-premise exchange server. When they receive an O365 link ie. https://forms.office.com/ the user get's the error, 'You do not have permission to view or respond to this form', even though the users has an E3 license. When they open up an incognito window and sign into O365 with the same credentials everything works flawlessly.
This is an expected behavior rather than an "issue". Per my understanding, although the credentials look the same, they can be taken as two separate user accounts just with the same password. So, when users are logged in OWA and connecting to the on-prem Exchange server, the on-prem user account is being used, thus error occurs when attempting to access the cloud service which requires a "cloud account" in the same browser window.