I experienced a Hybrid System Failure warning after a cold start the other day during cold winter weather (15 degrees F) in my 2016 T8 (45k miles). The failure warning was not accompanied by any noticeable defect in the hybrid driving systems. I was driving in pure mode, but the ICE did kick in for a bit as it often does on cold mornings, but eventually it reverted back solely to electric power. After turning the car off and restarting a few hours later the message had cleared. In the days leading up to this failure, I got a few failure warnings when I tried to turn on parking climate with the VOC app. I wasn't sure if this was connected to the hybrid system failure.
I took the car into the local Volvo dealer on the say that I received the hybrid system failure warning. They found there was a "fault" with the High Voltage Coolant Heater and replaced it. After replacement, the car would not start. They ran further diagnostics and found that there was also a "fault" with the A/C compressor, which they replaced. The dealer believes this has resolved the issue. I've been driving on it for a few days and have not expereied any recurrence of the failure warning and the parking climate is now working as before (until this 3g sunset gets me in a month or so).
I didn't have a tech explain it to me, but I'm guessing a failure of the coolant heater could generate a "hybrid system failure" notice because it is needed to warm up the battery in cold weather. I'm not sure why the heater and the a/c compressor would fail at the same time, or if perhaps the A/C compressor failed earlier but I didn't notice because I had not run it in several months.
As an aside, this was all fixed under an extended CPO warranty purchased through Steingold Volvo. The warranty paid out $1800 for parts and over $2,200 for labor for this particular repair, all told more than double the cost of the warranty itself.