On Facebook, I am trying to hide my friends from seeing who I am friends with and who I add as friends. I have already set "who can see my friends" to only myself and I have unchecked all boxes in my activity log for friends. Yet, even when I have unchecked all boxes, it still appears in my activity log and it also has the pencil tool next to it saying "allowed on timeline". What is happening here? I have no way of knowing what other people see. How can I ensure that no one can see my friends or anything along those lines. I do know that mutual friends will be shown, but I'm not worried about that.
You have already hidden it. So don't worry. It is visible to you only. No one can see these section now.
In normal case, when you click on pencil symbol you will see two options "Allowed on Timeline" and "Hidden from Timeline". You have already hidden this. So it is showing "allowed on timeline" option, and it will be visible to you only.