A hybrid bond diamond wheel uses a diamond layer held by a mix of binders/materials (commonly a resin + metal/plastic matrix, or a bond system engineered to combine properties). The goal is to balance:

cutting aggressiveness (diamond exposure and chip space)
wheel wear control (enough holding strength)
toughness (less chipping/edge breakage than a fully brittle bond)
thermal stability for harder carbide grinding
For carbide drill bit fluting/fultting (I assume you mean flute grinding/fulting), these wheels are usually specified for profile/helix grinding and flute regrind where you need consistent geometry and smooth chip-breaking performance.

How it works on a CNC grinder (typical process)
On a CNC grinding setup, the wheel is moved/controlled to follow the flute geometry:

Wheel contacts the carbide along the flute relief/profile.
CNC controls infeed, feed rate, wheel speed, and dwell time to shape flutes consistently.
Coolant/air blast removes swarf and controls temperature.
The hybrid bond is designed so the wheel maintains shape while still releasing fresh diamond when needed (depending on how it’s formulated.