I experimented a bit and saw what you did.
And why this is - is because every event on a controller is treated like that exact timestamp need to exist to replace it.
So it’s not treated like automation in a smart way seeing this is controller that replace in this area.
So overwriting automation is very different from midi CC.
I think looking into controller automation modes might be way to solve it.
You can decide if CC7 is treated and recorded as automation ot both and also how to let one superseed the other.
What I did was to duplicate clips as track versions - and did different approach to each.
I found the most versatile way to create new part - and then show lanes.
Then merge afterword if you want - bounce of selected clips.
Then you always see what is there and what should happend.
Out of interest I will experiment a bit and change controller automation mode to make automation instead.
Then you can replace exactly like automation works. CC7 is very useful for this - since you hardly let CC7 jump up/down like modulation wheel does.
One looks interesting - automation merge mode Modulation - that part can modulate what is there on automation and other way around.
Or Replace 1- part range and the other Replace 2 lst value continues also looks useful.
I came to look at Logical Editor - there is a preset Delete All controllers in cycle range.
If modifying this to CC7 only you can then merge a clip if cycle is same as a separate part to merge with.
Only got this far - but a macro can probably be made doing sequence of stuff.