Once the HV battery is fully charged the generator must stop charging . Otherwise where would the excess electricity go? When this happens The ICE takes over the engine braking by conventional means -using the engine compression.
Its not directly the engine compression that is causing the engine braking, it is still electrical regeneration.
It is the drive motor connected to the wheels that is charging the battery, working as a generator and not the motor connected to the engine. When the battery is fully charged, the motor connected to the engine starts to turn the engine over to waste the extra energy, like it is trying to start the engine, but it does not inject fuel and keeps the throttle closed so there are compression losses, thats why the engine begins to make the loudish noise. At that point the lock-up clutch is not engaged as the gearing would not be suitable at all vehicle speeds.