We are using 365 and setting up multifactor authentication.
My thoughts are that users using hybrid Azure AD joined devices already have an additional form of authentication which is the device. And given that a lot of my on site users are not technically gifted it would be preferable to forgo this for hybrid joined devices.
Now maybe this holds up, maybe it doesn't, I'm not sure. I don't know how an attacker could exploit this. But if I allow users using hybrid Azure AD joined devices not to require MFA then some users who only use a single company laptop may never be presented with the multifactor authentication setup screen and so MFA will never get setup. This in turn means if their account is compromised the attacker could exploit that.
I can of course run reports and chase people but I'd rather find some way of forcing this automatically. I don't believe there is one though.