When you're not Doing It Right(tm). As in if you try to use the hands for propulsion you will burn a lot of energy for very little effect.
That is another common misconception, based on seeing untrained divers using their hands in the wrong way.
Actually hand propulsion can be VERY efficient at low speed, far more efficient than frog kicking with short, hard fins.
Hand propulsion is particularly efficient for going backwards, where reverse frog kicking is the only alternative, which is highly inefficient (compared to forward propulsion).
The efficiency of hand propulsion has two causes: because you use a much smaller mass of muscles, and because the "opposition" movement has no "negative" parts, it is an "all active" action.
Problem is that almost no one is trained nowadays to use properly the "opposition" hand movement...
<EDIT> I correct myself. While these hand propulsion movements substantially disappeared in modern training of scuba divers, they have got a lot of attention in another sport: synchronized swimming.
When done properly, the "opposition" movement is very powerful ad efficient, allowing syncro-swimmers, for example, to push their legs outside the water and keeping them in that position, which requires to exert a significant vertical thrust.
In this article here below, some scientists analysed the forces involved in this hand-propulsion action, which is improperly called "sculling" in the article. In reality, sculling is a two-phases action, where half of the movement is active (the "thrust"), and the other half is providing no thrust, you are simply recovering back to the initial position ("recovery").
Instead the hand propulsion method of which I am talking is always active, as the hands change their attack angle when moving "out" and when moving "in", resulting in a constant thrust in the positive direction.
Read the paper and evaluate yourself the results...
https://www.tandfonline.com/doi/full/10.1080/14763141.2019.1671485