Project Lite users cannot see Project link on Office365 toolbar

Our Project Lite users do not see the PROJECT link in the Office365 toolbar.
All other roles can see the link - these have either Project Online subscription or Project Pro for Project Online subscription.
I have verified the following:
These users have Project Lite and SharePoint online licenses assigned in the Office365 portal - user license area
We are using Project Server permissions mode - with a custom Team Members group - that maps to the OOB Team Members group and My Task category permissions. There are no custom category permissions set on the Resource- only custom Team group
membership
We even shared the PWA site with the members (Team Members for Project Web App)
We are using ADSynch to synch users to the custom Team Members group via an O365 group.
We are using the default \PWA - it is the only instance of PWA in the Office365 environment (E3 subscription
These users can access the PWA by entering the URL in their browser - they just cannot see the Project link on the 0365 menu bar.
Note: The Office365 SharePoint online administrators have created a custom master page - but the PROJECT menu item is rendering for non-Project Lite licensees.
Any ideas on the cause or how to get Project Lite users to see the PROJECT link on the O365 toolbar?
LB

Hello,
Please can you confirm they are using the correct URL?
It should be along the lines of https://<Company_Name>.sharepoint.com/sites/pwa/
I ask you to check this as I have seen previously users not seeing the Project link when using a different URL.

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