Hi,
By default, the WooCommerce plugin doesn’t have products next/previous arrows functionality at all. To implement this feature we use standard WordPress PHP get_next_post and get_prev_post functions that can obtain adjacent posts from the database. Unfortunately, it takes products from the whole table and depends only on the shop page order. The system can’t know if this product is hidden or not.
We spent a lot of time investigating this issue but, unfortunately, there is no solution for this problem. You can check any other theme for WooCommerce and you will see the same issue.
You would better to move this product to trash to be sure that it will not be displayed.
Regards