Hide Overwritten Preview Parameters of Material Function Inputs inside Material Instances

The problem is that you are using parameters. Use a constant and the parameter will no longer be present unless specifically overwritten with a parameter in the outer material.

Also, maybe you don’t realize that when you name parameters the same include them in separate functions, once you bring them into the same material, as the material compiles the parameters merge.
Changes to one parameter in the instance will affect everything with that same parameter name, regardless of what function it belongs to.