This is standard behaviour on macOS for most applications and it is not currently doing anything else anyways.
Possible workaround: Isn’t there any other working hotkey that could be remapped by Keyboard Maestro to cmd+h?
On Windows 7, WinKey+ArrowDown works.
I later realized that cmd + h is used for search & replace.
My workflow was hiding all windows to access files on the desktop, but you could possibly do that with 4 finger pinch. Does any other app do cmd + h for search & replace thought?
It’s Win+D on Windows.
Sincie 0.12.2 removed the default ⌘M (Minimize) shortcut for macOS, I found this workaround for people who actually want that shortcut due to muscle memory or whatever.
Should look like this: