Icons only keeps navigation reachable when collapsed. Hide entirely gives the most room to the content but means customers must re-open the sidebar to move around.
Setting Search position to Hidden removes the tool search from the header. On panels with more than a handful of tools, search is how customers actually find things — hide it only if your tool list is genuinely short.
If you hide the Theme toggle here, also set a sensible Default mode in Theme & colour — your customers will have no way to change it.