"Is the default configuration of grub.cfg on the flash chip supposed to automatically look for libreboot_grub?"

Yes. This is what I've been trying to explain. :)
https://libreboot.org/docs/gnulinux/grub_cbfs.html has "by default, GRUB in libreboot is configured to scan all partitions on the main storage for /boot/grub/libreboot_grub.cfg or /grub/libreboot_grub.cfg(for systems where /boot is on a dedicated partition), and then use it automatically."

The key point there is "and then use it automatically." :)

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