Great to know that your question has been resolved and thanks for sharing your test results so that others experiencing the same thing can easily reference this! Since the Microsoft Q&A community has a policy that "The question author cannot accept their own answer. They can only accept answers by others", I'll repost your solution in case you'd like to "Accept" the answer : )
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Issue Symptom:
Set up Exchange Hybrid without Entra Connect or Cloud Sync set up even though it is a prerequisite.
- If do not set up a sync for users is there any problems we will encounter with users having both an onsite and cloud account with the same username but separate.
- if we do look to set up Entra Cloud Sync will there be any issues since Exchange Hybrid is already set up.
- how does Entra Cloud Sync handle Cloud accounts that already exist when you sync
Resolution:
Test result:
- There would have been issues such as Entra ID users not being able to see AD users in the global address list without sync. All users must be synced even if they aren't licensed to have similar hybrid features work.
- There were no issues when setting up Entra ID Cloud Sync after setting up Exchange Hybrid. Enabling Exchange Writeback worked as expected and migrating mailboxes worked.
- Entra ID Cloud Sync handles already existing accounts almost the same way as Entra ID Connect Sync from my testing. They will sync with the existing account unless it is an admin in Entra ID. If the user is an admin in Entra ID it will create a new user. https://learn.microsoft.com/en-us/entra/identity/hybrid/connect/how-to-connect-install-existing-tenant