It used to be possible in the earlier system versions, but many users wanted a "Hide" feature, that would keep the hidden photos secret, everywhere. So Apple changed the way the hiding has been working. In the earlier system versions it worked exactly as you want it to work - hiding just use to remove items from the library view without deleting them and kept them visible in the albums. It has been very useful to manage the Library view.
In Photos for Mac you can still make hidden photos visible, however. Just create a smart album with the rule "Photo is hidden".
For example:
- I have an album "2023 Hafengeburtstag Auslaufparade", with some hidden photos.
- Now I create a smart album with two rules:
- Match all
- Photo is hidden
- Album is "2023 Hafengeburtstag Auslaufparade"
- In this new smart album I can see the hidden photos from the album.
You will still need to enter the password to see the hidden photos in this smart album in the new system versions, where the hidden album can be locked with a password.