This is my understanding.
The hybrid inverter is an all in one solution; inverter for the panels, charge and discharge for the batteries and controlling the switching between the grid, solar output, and batteries to feed the house needs.
So it is a good solution providing the inverter power handling capacity is enough for the maximum output of the solar panels.
In my case the maximum panels output can exceed the capacity of the hybrid so a separate inverter was used to purely handle the conversion of the panels to AC. The AC inverter then still provides all the functions of the hybrid inverter but because it is working primarily with AC to switch between grid, external inverter and house it is less limited in its overall capacity. The inverter part of the AC inverter is used just to handle the battery and convert its output to AC. The capacity here will just limit the maximum flow to and from the battery not the overall capacity of the system.