Error when adding a bundle to quote after adding new item to product index of constraint model

I have require rules that live in a constraint model that automatically adds different products based on the type of bundle that is added.

I needed to add a new product to the rule so that we can add it to the rule. However when we added a new item via "New Item" in the visual editor: 

And tried to add a bundle to the quote afterwards, the quote lines were not added and instead threw the following error: 

The item was added as a standalone product, and not as part of a bundle.

Tried commenting out the product in the CML editor which deleted the product from the model but my suspicion is that it has created other definitions in the backend that is now tripping up the pricing procedure. 

My questions would be

1. What is the correct way to add a new product to the index if the product was not already showing?
2. Has anyone ever into this issue before?

#Revenue Cloud  #Option Constraints