On-premises sync with AAD hybrid joined device

Our Windows 10 devices are AAD hybrid joined and our security policy prevents us from using cloud sync for Edge.

I have tried configuring On-Premises sync, but any sign-ins, whether automatic or manual are always trying to sign in to the username@domain.com account rather than the domain\username account.

Changing the RestrictSignInToPattern to DOMAIN\${user_name} doesn't seem to work.

Tried on Stable and latest Dev, but the results seem to be the same.

Is it possible to use On-Premises sync on a hybrid joined device?