If a library has the system preference set to HIDE lost items, the item will still show up in the holds screen when a patron places a hold on a specific item These items should not appear within the OPAC as they should be hidden per this system preference. This bug is similar to 15448 where the system preference OPAChiddenItems is performing the same way. This might have some correlation with bug 2711.
Confirmed on master, item is hidden from the detail view, but reappears when placing a hold. Placing holds is blocked correctly.
Fixed by bug 24254 *** This bug has been marked as a duplicate of bug 24254 ***