@Vexxer_5 , If the machine is Hybrid AAD joined, a cloud only user wont be able to join, as while you login to a Hybrid AAD join machine, usually the user is present in both the on-prem and the cloud and only that user can login, because while logging into a Domain joined machine, the user first has to get authenticated by the on-prem Domain Controller before AAD checks the credentials.
Second option is to go ahead with Azure AD Joined machine.
Ref: https://learn.microsoft.com/en-us/azure/active-directory/devices/azureadjoin-plan
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