Hello @Trevor Harris-A and thanks for sharing your solution. Since accepting your own answer is not supported I'm reposting your solution here so that you can accept and rate it. It will ensure that others facing a similar issue can easily find a solution:
After exporting & reviewing the config I found that there was no mention of GroupWriteback in the file, so I had our Global Admin check again, and sure enough the Writeback option was not selected in the Entra ID Connect application. Sorry about that!
After enabling Writeback there, the new exported .json config file now properly shows the Groupwriteback configuration & the M365 groups are being exported properly. Snippet below:
"onpremisesDirectoryPolicy": [
{
"friendlyName": "abcd.local",
"uniqueIdentifier": "<removed>",
"fullyQualifiedDomainName": "abcd.local",
"onPremisesDirectoryAccount": "ABCD.LOCAL\\MSOL_<redacted>",
"groupWritebackDistinguishedName": "OU=Azure,OU=Security Groups,DC=abcd,DC=local",
"formatGroupWriteBackDistinguishedName": true,