Update: Starting November 2022, protection.microsoft.com URL does not work anymore. Please go to security.microsoft.com instead for the AntiSpam feature mentioned in this post.
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Updated Dec 08, 2023
Version 10.0
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Arindam_Thokder thanks for confirming and testing. I may not get a chance to test soon as it is a large audience prod policy, but my assumption is that the Automatic System - Controlled is behaving like the On setting rather than the Off as in n your tests. Nonetheless I'll re-confirm the happening as I described just to be certain, whereas you just tested and proved otherwise. Will update tomorrow.
Update: Hi again. It's confirmed - "Automatic - System-Controlled" is set, * Remote Domain AutoFWD=Off, <custom> Remote Domain AutoFWD=On, forwarding via Inbox Rules working. Here's a clip from the email entity page:
We had configured remote domains prior to forwarding being added to the controls of outbound anti-spam policies, so maybe this is why System-Controlled = "On" for us. Still good to know that typically, or at least potentially/tenant-dependent, it will work the way you confirmed on your end. So thanks again.