This shows how to drop a block that is already placed on your site into the flow of a page, as a paragraph you can colour and space like any other.
What the Block field really points at
paragraph_bundle_block adds one paragraph type, block_bundle, with a single content field labelled Block. That field is an entity reference to Drupal's block configuration entity — a block instance that has already been placed through Structure, Block layout. Pick it here and its rendered output appears inside your paragraph, in the middle of the page body, wherever the paragraph sits.
Why that matters in practice
A placed block is normally tied to a region and a visibility condition. Referencing it from a paragraph gives you the same block in a place the region system cannot reach — between two text paragraphs, inside a column of a layout bundle, or halfway down a landing page — without duplicating its content.
Styling the wrapper, not the block
The block keeps its own template and markup. What the bundle adds is the wrapper: a Title with its tag and alignment, then the Display tab — Colors, Border and radius, Spacing, and Size and effects. The sub-module ships no template, CSS or JavaScript of its own, so nothing here fights with your theme's block styling.
Not the same as referencing block content
There is a second bundle for the other case, where you want a reusable content block rather than a placed one. The distinction is worth getting right before you build: blocks versus block content in Drupal explains which is which.
Requirements
Core Block, plus Drupal 11.3 or 12 — the whole suite declares ^11.3 || ^12. Install it from the Paragraphs Bundles module page.
Need this built into your own site? See Drupal development services, or request a quote.