Logically, how can God be everywhere and not inside everything?
If He is everywhere, He is inside and outside.
That’s not what the Bible teaches. The Bible teaches that God’s presence is in the material universe, but He is not of the material world. The hammer doesn’t have intelligence or a will of its own. If God were in that hammer, it would have intelligence and a will.
If God were in the hammer, we should worship that hammer.
Exactly. As I posted above, “there is no spot where God is not.”