End-to-end optimization of diffractive optical elements (DOEs) profile through a digital differentiable model combined with computational imaging have gained an increasing attention in emerging applications due to the compactness of resultant physical setups. Despite recent works have shown the potential of this methodology to design optics, its performance in physical setups is still limited and affected by manufacturing artefacts of DOE, mismatch between simulated and resultant experimental point spread functions, and calibration errors. Additionally, the computational burden of the digital differentiable model to effectively design the DOE is increasing, thus limiting the size of the DOE that can be designed. To overcome the above mentioned limitations, a co-design of hybrid optics and image reconstruction algorithm is produced following the end-to-end hardware-in-the-loop strategy, using for optimization a convolutional neural network equipped with quantitative and qualitative loss functions. The optics of the imaging system consists on the phase-only spatial light modulator (SLM) as DOE and refractive lens. SLM phase-pattern is optimized by applying the Hardware-in-the-loop technique, which helps to eliminate the mismatch between numerical modelling and physical reality of image formation as light propagation is not numerically modelled but is physically done. Comparison with compound multi-lens optics of a last generation smartphone and a mirrorless commercial cameras show that the proposed system is advanced in all-in-focus sharp imaging for a depth range 0.4-1.9 m.