We have installed Xray add-on in our Jira instance and have created few Xray projects. Only the testing team in the company uses Xray via Xray projects.
We haven't exposed any Xray issue types into software projects in our instance. But we see an option to enable Xray requirement coverage in the Actions menu in Project settings page of software projects. Since the teams who are using software projects do not need Xray at the moment, they don't want this option under Actions menu.
Is there a way to remove/hide it from the Actions menu? Or is there a way to restrict this ability to Enable Xray requirement coverage only system_admins?
What you need to do is not possible.
You can only control Xray usage by configuring roles/groups of people authorized to work in a certain project.
Both server and cloud versions of Xray are able to manage which projects within your instance has access to the app. Since we are reusing Jira issues and concepts, managing permissions is very much alike.
With that being said, you should use the Jira native options, to have a control on the access to projects and Xray info.
You can take a look at this section in our documentation for server settings, inside you´ll be able to access the Project Settings article as well.
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