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Just change to filter settings of your library to make tools invisible.
They are not installed on your system, just available for download should someone wish to use them.
Un-click it.
Tada.
Some tools you get automatically, some are added when you purchase a game. Most of these are just for game modding or hosting multiplayer servers.
Ok, ignore the solution provided and just suffer then.
https://youtu.be/fNq0-CC9i_0
Once you've done that, click on the area above your list of favorite game titles and mark the checkbox at the bottom that says: 'group by collection'.
The drop down box that lets you change the library menu from grouped by collection or not has several categories that you can toggle on and off. Games, Tools, Software, Soundtracks. Just make sure Tools doesn't have a checkmark next to it and all those dedicated servers and the like will stay hidden from view.
or dont and keep seeing them.
have a nice day