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What does "Hide your name" do exactly?

I'm not talking about Anonymous, rather Hide Your name. It states it replaces your name in game with "You" which I can verify, but it also reads "...and will be completely hidden in your friends list." I assumed that to mean I wont show up in the game's friend list but this isn't so. I've asked friends they still see me. I also verified this myself by logging on to an alt account on my ps4 and my main account on my ps5 and still saw my name in friend list.

So either it isn't working completely or I misunderstand what "...and will be completely hidden in your friends list." actually means.

Answers