We got the below error while trying to create a quote product programmatically.
As the error message specifies, this is because we are trying to add/associate a DRAFT product to the Quote Product.
We will get a similar error from the application as well if we try adding a draft product as an existing product to either a quote product or an opportunity product.
Below is the product in the Draft status.
Publish the product to make it Active.
Hope it helps..