Yes, the "Item Type" field is essentially not editable. It comes up often, such as doing CSV imports for items.... You need to do an import for each Item Type (Inventory, Assemblies, and Kits). Matrix Items are considered Item Type: Inventory Items, BUT held out on their own, despite that. My team often laments the rigidity and limited configurability of Matrix Items. We often find ourselves wishing there was such thing as a "Matrix Kit", where the user drop down options result in a Kit sku. I'd settle on some more functionalities, period, like "Add an item" options (with a simple yes or no, a la Shopify). If we add such an add-on / up-sell like this, it multiplies the sku count for each question. I had systems in the 2000s and 2010s that had more flexibility than this, which does get quite frustrating.