I would like the ability for players to create private matches using Unity relay and Unity lobbies, But to also have the ability to join public matches which will be hosted on a dedicated server using Multiplay. Is this possible?
There is nothing that prevents you from doing it.
Thanks, is this achievable for a solo indie developer? I have seen that most game companies who use Multiplay have teams of large sizes
I dont use Multiplay, but I think the biggest problem will be the money 
What if instead of using Multiplay for dedicated servers, I used Azure playfab?
Could I use Playfab (for dedicated servers) and Unity Relay (for private matches ) in the same project?
I imagine you are thinking DGS as a solution for cheat prevention? If so, it may not be an issue depending on your player count. DGS can be rather expensive if your game is not very popular and monetising well. You could consider a relay / lobby service for both private and public matches to minimise the cost of running your game.
Cheat prevention is one reason I want to use DGS but also to avoid players being kicked out when The host leaves.
Yes i’m aware that DGS can be quite expensive but I think it’s the best way to go considering I will have up to 20 players in a game. Playfab also offers a free tier with a maximum of 100k users which is great.
Dedicated Server hosting is not included
If you want something free you can put your game on steam (100$) and you will have a free relay, matchmaking and anti cheat.
If you dont want to put it there, Epic Online Services offers the same, and completely free, without having to put your game on Epic Games Store.
If you decide to use EOS, keep in mind that is a nightmare to use, so a better idea will be to use a EOS transport on a networking solution, wich will make it much easier. Mirror has one, but I have never used it, and Fish-Net will get one soon. Andother benefit of EOS is that it works on every platform out there, including consoles, while steamworks is only for PC.
I knew it sounded too good to be true , Thanks for the other options I will definetly be looking into them.
You mentioned before how it can be quiet expensive to setup a DGS, but surely with a very well monetised game I should be able to pay for the costs? I am quite optimistic in my monetisation strategy (In app purchases and in game ads).
Or am I being too ambitous for an indie developer? should hosted games really be my primary foucs?
You first need to build a community.
Until then, your game should be something casual that people play with their friends.
So, yes, focus more on player hosted, since, as I said, it can be comletely free with EOS
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Thank you very much for your insight. Player hosted games it is. 
Can I use EOS as a transport layer for netcode for gameobjects?
I think that netcode doesnt have one.