It is not possible to hide issue type, but it is possible to restrict creation of issues with specified issue type. Since there is no conditions on create transition, only validators, so it is possible to use validators.
It means that users from this group will be able to select this issue type for creation, but will not be able to do this. This is not the best solution, but it works. We use this, users are confused a little, but they do not create issues they are not allowed.
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