Community:What happened to bundles
From Splunk Wiki
Prior to 3.3, Splunk configurations were contained in the $SPLUNK_HOME/etc/bundles directory. Although you could create your own custom bundles, most hand-edited conf files were in etc/bundles/local.
The directory structure was changed with 3.3 to add system and apps directories. Configurations that would previously be in a custom bundle can be made into apps and the new $SPLUNK_HOME/etc/system/local is the equivalent to the old etc/bundles/local. Until 4.x, bundles still worked but were not recommended.
The deployment server did install deployed apps on the client in the bundles directory for some versions of 3.x, for 4.x these are installed into apps. On the server, they are in the deployment-apps directory.