How to stop a parameter from absorbing impact from missing covariate?

So i am simulating two nested models and I want to show that when i generate data according to the covariate model, that it performs better in model comparison. However, i notice that when i look at the estimates of my beta from my baseline model, beta is absorbing the missing type effects. So the beta parameters are quite far off from the true beta parameters, but overall they still result in similar counts as the model comparison finds little difference most of the time. How can i stop beta in my baseline model from “stealing” effects from the missing type parameter?

Maybe I need to introduce hierarchical priors or something? So my data is clear:

Theta represents an individual level effect (person ability for example)
Beta represents the difficulties of the items
Type represents the effect of item type (for example multiple choice, open ended, etc.). The type is set up such that each item can only be one type, and it is always that type for every person. For example, i could have 40 items, and 4 types, making 10 items per type.

So maybe there is some nesting structure going on that I am not account for? The results indicate that beta in the baseline model is absorbing essentially 100% of the type parameter in addition to itself.

model_baseline <- stan_model(model_code = "data {
  int<lower=0> I;
  int<lower=0> J;
  int<lower=1> N;
  int<lower=1,upper=I> ii[N];
  int<lower=1,upper=J> jj[N];
  int<lower=0> y[N];
}
parameters {
  vector[J] theta;
  vector[I-1] b_free;
 

}
transformed parameters{
  vector[I] beta = append_row(b_free, -sum(b_free));
}
model {

  theta ~ normal(0, 1);
  target += normal_lpdf(beta | 0, 1);

  y ~ poisson_log(theta[jj] + beta[ii]);
}
generated quantities{
  vector[N] log_lik;
  for(n in 1:N){
    log_lik[n] = poisson_lpmf( y[n] | exp(theta[jj[n]] + beta[ii[n]]));
  
  }
}

")

model_covariate <- stan_model(model_code = "data {
  int<lower=0> I;
  int<lower=0> J;
  int<lower=0> K;
  int<lower=1> N;
  int<lower=1,upper=I> ii[N];
  int<lower=1,upper=J> jj[N];
  int<lower=1,upper=K> kk[N];
  int<lower=0> y[N];
}
parameters {
  vector[J] theta;
  vector[I-1] b_free;
  vector[K-1] k_free;


}
transformed parameters{
  vector[I] beta = append_row(b_free, -sum(b_free));
  vector[K] type = append_row(k_free, -sum(k_free));
}
model {

  theta ~ normal(0,1);
  
  target+= normal_lpdf(beta | 0,1);
  target+= normal_lpdf(type | 0,1);

  y ~ poisson_log(theta[jj] + beta[ii] + type[kk]);

}
generated quantities{
  vector[N] log_lik;
  for(n in 1:N){
    log_lik[n] = poisson_lpmf( y[n] | exp(theta[jj[n]] + beta[ii[n]] + type[kk[n]]));
  
  }
}

")
} 

my data generation code if needed:

simulation_conditions <- list(c(100,40), c(200,40))

for(condition in simulation_conditions) {
  J <- condition[1]
  I <- condition[2]
  K <- 4

  for(x in 1:nrep){
        
    seed <- x*36
    set.seed(seed)
    
    loo_results <- data.frame(replication = integer(),
                          model_base_loo = numeric(),
                          model_base_waic = numeric(),
                          model_cov_loo = numeric(),
                          model_cov_waic = numeric())
    
    results_base <- list()
    results_base$rep <- x
    results_cov <- list()
    results_cov$rep <- x

    print(paste("Working on RPCM vs MFRPCM: condition (J,I): (", J, ",", I, ") rep: ",
           x, " started at: ", format(Sys.time(), "%Y-%m-%d %H:%M:%S")))
    start_time <- Sys.time()

    theta <- rnorm(J, 0, 1)
    
    #beta <- runif(I,.5,1.5)
    beta <- rnorm(I,0,1)
    
    type <- c(-3.9, 4.3, -4.6, 4.2)
    type[K] <- -1*sum(type[1:K-1])

    N <- I*J
    ii <- rep(1:I, times = J)
    jj <- rep(1:J, each = I)
    kk <- rep(1:K, times = N/K)
    
    y <- numeric(N)
    for(n in 1:N){
      y[n] <- rpois(1,exp(theta[jj[n]] + beta[ii[n]] + type[kk[n]]))
    }
    
    #generated data according to the covariate model
    
    fit_covariate <- sampling(model_covariate, data = list(I = I,
                                                           J = J,
                                                           K = K,
                                                           N = N,
                                                           ii = ii,
                                                           jj = jj,
                                                           kk = kk,
                                                           y = y), 
                              iter = 4000, control= list(max_treedepth = 12))
    
      
    fit_baseline <- sampling(model_baseline, data = list(I = I,
                                                           J = J,
                                                           N = N,
                                                           ii = ii,
                                                           jj = jj,
                                                           y = y), 
                              iter = 4000, control= list(max_treedepth = 12))
etc.