Well I was able to use the functionality in the resource manager to move location where the game looks for the GR2 files. You find where they are in MAIN in the resource manager and right click them. On the right click menu there's an option "rename/move". I did that and moved it to a PAK file in my mod. Note: This causes my editor to crash the first time. So after moving them I restarted the editor and they were still in my PAK. So it seemed to work.

Then on the sidebar of the GR2 files in the resource manager I changed the "source file". Pointed each resource to the GR2 files from Demonata's mod located in the folder discussed earlier. To my astonishment it actually worked. Sort of. There was some weird remnants of the rock and bush but it was no longer covering the whole character.

This struck me as odd since the GR2 files get rid of it entirely when simply placed in main. So what I think it is doing is pulling the "material" of the rock/bush and still putting it on your character. Because it's expecting the GR2 effect as well so it's calling the material for the effect. And I don't know how to get it to stop doing that. My suspicion is it's in an LSB file somewhere but that's above my modding paygrade think