As the story progresses, Bilbo earns the dwares respect and friendship.At what moment in bilbo's journey does he complete his transition from grocer to hero? Please

In my opinion, Bilbo transforms from thief to hero when he withholds the Arkenstone and gives it to the Elven King to use as a bargaining chip. He knows Thorin may choose to kill him for his actions, and yet, he makes the decision that is best for everyone.