Explanation:

UC’s scenario:

Product should only be sold as part of a bundle.
Product should not appear on the Product search screen when reps add products manually.

This is exactly the purpose of the Hidden checkbox on a Product record in Salesforce CPQ:

“When you select the Hidden checkbox on a product, that product does not appear in product search results or on the Add Products page. However, you can still add it as a feature option in a bundle.”

So:

✅ Product can still be used as a bundle component.
✅ Users cannot select it directly when quoting standalone products.

This is the recommended best practice for bundle-only components.

Why not the other options?

A. Set the Configuration Type field to Allowed.
The Configuration Type controls how bundles behave during configuration (Allowed, Required, Disabled). It does NOT hide a product from product searches.

B. Select the Component checkbox on the Product.
The Component checkbox indicates the product is used as a sub-product in a bundle, but it does not hide it from product search results.

D. Set the Asset Conversion field to One per unit.
Asset Conversion controls how CPQ converts quote lines into assets during contracting. It’s irrelevant to product search visibility.