You were right with the first part alone - let the teams choose. Hybrid worked for me and my team pre-pandemic, where we had no emphasis on location at all, so some people worked remotely full time, and the rest were free to come in to the office at their discretion. We would get together periodically (and deliberately), but outside of a few times a year, there was no emphasis on location at all. Most days, you wouldn't know who was in the office or not until the cams came on during standup.

I worked hybrid before the pandemic.

It was the best of both worlds. 3/5 days at the office was great.

It gave the benefit of socialising and collaboration, with the flexibility of being at home for visiting home contractors, bulk deliveries, or somewhere where you could take a deep dive into something with no interruptions.

Amen！