Allah, the Exalted has created the human beings with freewill and volition which that human evolution (perfection) is gained through free choice and will. Therefore if people like the hypocrites choose to go astray of their own free will, it would not be right on the part of God ot guide  them to the right path forcefully. Because; firstly, doing so would be against the divine wisdom  in humans' creation. Secondly, forced guidance which is without man's own will is of no value.
 
The explanation is that God is merciful to all his servants and has provided all the preliminaries for their guidance and felicity. However, He has left to their own will the use of these arrangements and reaching guidance and felicity, so that everyone can choose of their own free will the path of guidance or the path of destruction. In fact the spiritual well-being or disease of each person is under his control. That is why the Holy Quran says: "There is (lies) a disease in the hearts of the hypocrites and God will add to it". And it means that they have abused the authority bestowed to them in order to choose the right path, so they chose to go astray and were deprived of the blessings and advice of the divine Prophets. That is how God's tradition for themis to let them drown further in the same hypocrisy that they have chosen to tread in. In other words, the divine tradition and the divine law applies to him in the same way as it applies  to someone who  is suffering  from a physical illness but is not seeking a cure for it which  only leads to further aggravation of  his  his illness; the same divine law is true with deviations and spiritual and psychological disorders. Hence, if he does not seek to cure it  with repentance and regret, he will get deeper into  those problem. Since it is a divine law and tradition, it has been attributed to God. Therefore, this verse does not contradict God's grace and favor because the deviants and hypocrites disobey the divine injunctions and  tread the wrong way and deprive themselves of divine grace, kindness and guidance of their own freewill.