I had a related problem which has taken me a few weeks to fix, by accident. For client-mandated reasons we were using 2019, but upgraded to 2020 in an attempt to fix this issue, but it did not work.
It was experienced as the whole of linked IFC, SAT, and DWG files being visible in plan (the elements above and below the View Range), no matter what the setting or original category. The Clip setting made no difference. This made liked IFC files useless for showing in plans. The linked IFC files showed up as expected and were cut in section.
However new Plan Views, and some existing Plan Views, behaved as expected and the IFCs were cut in plan perfectly. I coudn't work it out.
It wasn't until I was recreating a view from scratch that I discovered that if there was a Plan Region anywhere in the View, the IFC link would stop being cut and display all its above and below elements. Delete the plan view and the IFC behaved normally. The IFC file was huge in extents and no doubt was cut by the Plan Region, which somehow interfered with display of the IFC. I don't think the IFC displayed as the Plan Region settings. I just fiddled the drawing so I didn't need a Plan Region.