This topic is covered in “Entities.add_group causes Bugsplat!”
It shows an script originally posted by TIG, but modified to avoid a bugsplat when the component included an arc or curve.
Dan R advised that its better to add the component instance to a new group, then explode the instance thats inside the group.
If the instance has just been created, then all of the logic to preserve attributes, layers, shadow characteristic, material, scale masks etc, may not be relevant.
But you still might want to purge the compoennt definition from appearing the in “In Model” component panel.
Since the only difference between a component instance and a group is a hidden flag in accessible to the API, you do need to go through all of this to accomplish the task unfortunately.
Also it would be nice if Model.import which results in a component had an option to import as a group. This would again avoid the need for conversion.