Hello,
The fact that your vendors can or cannot create variants come to the "ACL" you have configured.
So you will find some "rights" to your vendors regarding the "characteristics" and "variants".
Like "product/edit/characteristics", "product/edit/variants" and "product/variant".
By removing these rights ; they would just be able to create regular products.
That is what control the fact that a vendor can create variants. But in your case, it looks like you want them to be able to do so.
The display of that dropdown is not related to a setting in HikaMarket.
But the display is not related either to the fact that the vendor can or cannot create variants. It is just a filter to display products or variants. Changing the filter do not change the vendor ability to create or not variants.
If you want to remove that filter, you would need to use some CSS (to hide it) or a view override (to remove the PHP code).
In the view "productmarket / listing" you will find these two lines that you want to delete/comment.
if(!empty($this->productType))
echo $this->productType->display('filter_product_type', @$this->pageInfo->filter->filter_product_type);
Regards,