When we install an LTI tool that we want teachers but not students to see, we use the following:
That creates a course menu item that teachers can see but students don't. However, it is colored black. That makes teachers think that it will be visible to students (because the built in Canvas course menus that are black are visible to students).
In addition, if you go to the Course Settings, Navigation, and move the menu item from enabled down to disabled, then it won't show up for teachers. In contrast, moving built in menus, disables them only for students and makes them display in gray.
Am I missing something? I'd like to install the tool in a way that the course menu behaves like the built in Canvas course menus.