This only applies to stores using the Variant Dependant Method of Bold Bundles. The Draft Orders or Accelerated Method does not create variants.
Yes, it's possible. Bold Bundles will double the variants on a product that is included in a bundle offer. As long as you have 50 or less variants, you won't have an issue. If you have more than 50, you will not be able to use that product in a bundle sale.