When you restrict someone, they will be able to see your posts/stories, comment on it but it will be hidden from your profile. When you're limiting contact or a follower, you're just doing it for the sake of avoiding unwanted conversations which otherwise you had to face when you're blocking someone.

When you restrict someone on Instagram can they see your posts?

They won't be able to see your past or future posts even if you have a public profile. That is one of the ways to identify if you have been blocked. On the other hand, when you restrict someone, nothing changes in terms of feed and stories. The restricted person can still see your stories and published posts.

Does restricting an account hide posts?

If a user chooses to restrict any individual, all of their future comments will be invisible to the public. This only pertains to comments on posts by the person who restricted them. The user can also choose to approve the comments to make them visible to all users.