Exchange Online Mailbox cannot see Unsynchronized On-Premises mailbox Free/Busy info and vice versa

Hello Everyone!

I originally posted an issue on Microsoft Learn https://learn.microsoft.com/en-us/answers/questions/5651848/free-busy-not-viewable-from-on-premises-mailbox-to?comment=answer-12418292&page=1#comment-2404594 regarding Free/Busy issues with our On Premises Exchange Server which is running the latest version of Exchange SE and Exchange Online which is on our Microsoft 365 Tenant.

At first, it would fail the Test-OAuthConnectivity, but that now seems to be fixed with renewing the OAuth Certificate and in addition, enabling the Dedicated Exchange Hybrid App as per https://learn.microsoft.com/en-us/exchange/hybrid-deployment/deploy-dedicated-hybrid-app . On initial deployment, we could not see Free/Busy between EXO and On-Prem Exchange but after 2 hours, it started working but only between On-Premises Synchronized to Microsoft 365 Mailboxes and EXO Mailboxes

Our final problem is the viewing of Free/Busy information of On-Premises 'NON-Synchronized to Microsoft 365' mailboxes and EXO Mailboxes. Running the Free/Busy Troubleshooter on ExRCA just gives me a warning during the Determining where the target mailbox is hosted. Also using 'Test-OAuthConnectivity -Service EWS -TargetUri https://outlook.office365.com/EWS/Exchange.asmx -Mailbox<onpremnonsynchedmailbox>@domain.com -verbose | fl ' on our On-Prem EMS leads to the following error

System.Net.WebException: The remote server returned an error: (500) Internal Server Error. at System.Net.HttpWebRequest.GetResponse() at Microsoft.Exchange.Monitoring.TestOAuthConnectivityHelper.SendExchangeOAuthRequest(ADUser user, String orgDomain, Uri targetUri, String& diagnosticMessage, Boolean appOnly, Boolean useCachedToken, Boolean reloadConfig)

ResultType : Error
Identity : Microsoft.Exchange.Security.OAuth.ValidationResultNodeId
IsValid : True
ObjectState : New

Please advise on how we can fix this error.