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I have reviewed and implemented the MR! provided by @ ant1. The MR! has been implemented successfully.
I am attaching my screenshot for your reference. Please review.
And Thank You.

Thanks!

I think that the Note is not clear enough, and should be something like:

Only the layouts that have been enabled in the settings of the 'Layout Paragraphs' behavior will be shown here.

Feedback from #6 has been applied. Thanks for reviewing it.

Verified the MR8, the note is updated. Added screenshot for reference, RTBC++

This MR changes the same message as #3371967 📌 Allow to toggle between allow-list and block-list Fixed :

I think if we merge both messages from both MRs it might become a bit confusing, maybe we can get maintainer feedback here.

Thinking about it, we have 2 levels of filters a site architect / this module has to be aware of:

1. Paragraph type filter on the host entity paragraph field (e.g. field.field.NODE_TYPE.FIELD_FOO). This filter is not visible in this form, because it is on field level, not in layout or region definition. Even though all bundles are shown here, it will still affect everything here.
2. Layout filter by behavior plugin on the parent layout paragraph entity (e.g. paragraphs.paragraph_type.LAYOUT_PARAGRAPH)
   This is reflected in the form, disabled layouts are omitted here.

I'd suggest one combined message "Note that there might be additional filters on the paragraph host field and on the layout paragraph behavior." to avoid cluttering the UI too much. I'm a fan of short and concise messages, I don't think we need the full explanation of this comment directly in the UI.

I can agree on that. The intention was to, at least, make the site builder aware.