Got it working in the end - the issue was that my s3 source and destination buckets were encrypted and I had specified the KMS key ID for the source bucket and KMS Key Alias for the destination bucket. I switched to use the KMS Key ARN for both and the inventory began working. I didn't see this limitation specified anywhere the the documents.
I noticed that when I made that change, the inventory folders were created in the destination bucket almost immediately which gave me hope that it would work after I waited another 24 hours to test it.
Another funny thing was that even though the inventory began working, the hyphen is still showing up in the source bucket's inventory configuration's "Last export" field..... This suggested to me that it hasn't completed even though when I checked the destination bucket the inventory report was there..... So always check the destination bucket as you can't really trust that "Last export" field.
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