Microgrid (µG) systems have emerged as a rapidly expanding concept in modern power systems due to its inherent capability to integrate multiple distributed generators (DGs) and renewable energy sources (RESs). However, the intermittent and dynamic nature of these sources, whose outputs depend heavily on weather conditions, introduces several operational challenges to µG systems, among which arc faults (AFs) represent a critical safety concern. Despite increasing research interest in µG protection, comprehensive review studies focusing on hybrid AC/DC microgrids (HAC/DCµGs), particularly regarding AF classification, detection, and protection strategies, remain limited. In HAC/DCµG systems, the simultaneous operation of AC and DC subsystems introduces additional complexity, as AFs occurring on either side can significantly compromise system reliability and operational safety. Accordingly, this paper provides a systematic review of AF phenomena, fault types, and reported case studies, along with existing mitigation strategies and their technical limitations. Furthermore, AF detection approaches based on metaheuristic optimization are critically reviewed, with particular emphasis on their effectiveness in improving detection accuracy and reducing misclassification. The review reveals that no single detection technique can reliably address AFs under diverse operating conditions and uncertainties, thereby highlighting the need for adaptive, multi-domain, and optimization-assisted protection frameworks to ensure reliable HAC/DCµG operation.