There are a couple of issues you need to fix:
- Defining a transparent color in - app:contentScrimattribute: This should be an opaque color instead as it wraps the- ImageViewand the text using the- app:layout_collapseMode="parallax"behavior. I used an arbitrary color for this.
 
- Missing - app:layout_collapseMode="parallax"in the- LinearLayoutof the couple of textViews that you want to hide.
 
Also you need to move the LinearLayout of the couple of textView's to be below the MaterialToolbar, as both has different collapsing behaviors.
Applying those changes:
<?xml version="1.0" encoding="utf-8"?>
<androidx.coordinatorlayout.widget.CoordinatorLayout xmlns:android="http://schemas.android.com/apk/res/android"
    xmlns:app="http://schemas.android.com/apk/res-auto"
    xmlns:tools="http://schemas.android.com/tools"
    android:layout_width="match_parent"
    android:layout_height="match_parent"
    android:fitsSystemWindows="true"
    tools:context=".presentation.common.view.Demo2HomeFragment">
    <com.google.android.material.appbar.AppBarLayout
        android:id="@+id/appBar"
        android:layout_width="match_parent"
        android:layout_height="wrap_content"
        android:background="@android:color/transparent"
        android:fitsSystemWindows="true">
        <com.google.android.material.appbar.CollapsingToolbarLayout
            android:layout_width="match_parent"
            android:layout_height="wrap_content"
            android:background="@android:color/transparent"
            android:fitsSystemWindows="true"
            app:contentScrim="@android:color/holo_blue_dark"
            app:layout_scrollFlags="scroll|exitUntilCollapsed|snap"
            app:statusBarScrim="@android:color/transparent">
            <com.google.android.material.imageview.ShapeableImageView
                android:id="@+id/imgHeaderBackground"
                android:layout_width="match_parent"
                android:layout_height="192dp"
                android:contentDescription="@null"
                android:fitsSystemWindows="true"
                android:foreground="@drawable/img_header_background_overlay"
                android:scaleType="centerCrop"
                android:src="@color/colorPrimary"
                app:layout_collapseMode="parallax"
                app:shapeAppearanceOverlay="@style/ImageviewRoundedBottom48dp" />
            <LinearLayout
                android:layout_width="match_parent"
                android:layout_height="wrap_content"
                android:layout_gravity="bottom"
                android:layout_marginStart="16dp"
                android:layout_marginEnd="16dp"
                app:layout_collapseMode="parallax"
                android:layout_marginBottom="48dp"
                android:orientation="horizontal">
                <LinearLayout
                    android:layout_width="0dp"
                    android:layout_height="wrap_content"
                    android:layout_weight="1"
                    android:orientation="vertical">
                    <TextView
                        android:id="@+id/txtBranchAddress"
                        android:layout_width="wrap_content"
                        android:layout_height="wrap_content"
                        android:text="{branch.address}"
                        android:textAppearance="@style/TextAppearance.MaterialComponents.Body1"
                        android:textColor="@color/white"
                        tools:ignore="HardcodedText" />
                    <TextView
                        android:id="@+id/txtBranchPhone"
                        android:layout_width="wrap_content"
                        android:layout_height="wrap_content"
                        android:layout_marginTop="4dp"
                        android:text="{branch.phone}"
                        android:textAppearance="@style/TextAppearance.MaterialComponents.Body1"
                        android:textColor="@color/white"
                        tools:ignore="HardcodedText" />
                </LinearLayout>
                <ImageView
                    android:id="@+id/btnSearch"
                    android:layout_width="wrap_content"
                    android:layout_height="wrap_content"
                    android:background="?attr/actionBarItemBackground"
                    android:contentDescription="@null"
                    android:padding="8dp"
                    android:src="@drawable/ic_search" />
            </LinearLayout>
            <com.google.android.material.appbar.MaterialToolbar
                android:id="@+id/toolbar"
                android:layout_width="match_parent"
                android:layout_height="56dp"
                android:paddingStart="16dp"
                android:paddingTop="8dp"
                android:paddingEnd="16dp"
                android:paddingBottom="8dp"
                app:contentInsetStart="0dp"
                app:layout_collapseMode="pin">
                <LinearLayout
                    android:layout_width="match_parent"
                    android:layout_height="match_parent"
                    android:gravity="center_vertical"
                    android:orientation="horizontal">
                    <ImageView
                        android:id="@+id/imgBranchLogo"
                        android:layout_width="0dp"
                        android:layout_height="wrap_content"
                        android:layout_weight="1"
                        android:contentDescription="@null"
                        android:scaleType="fitStart"
                        android:src="@mipmap/ic_launcher" />
                    <ImageView
                        android:layout_width="40dp"
                        android:layout_height="40dp"
                        android:contentDescription="@null"
                        android:src="@drawable/abc_vector_test" />
                </LinearLayout>
            </com.google.android.material.appbar.MaterialToolbar>
        </com.google.android.material.appbar.CollapsingToolbarLayout>
    </com.google.android.material.appbar.AppBarLayout>
    <androidx.core.widget.NestedScrollView
        android:layout_width="match_parent"
        android:layout_height="match_parent"
        app:layout_behavior="@string/appbar_scrolling_view_behavior">
        <LinearLayout
            android:layout_width="match_parent"
            android:layout_height="wrap_content"
            android:orientation="vertical">
        </LinearLayout>
    </androidx.core.widget.NestedScrollView>
</androidx.coordinatorlayout.widget.CoordinatorLayout>