I believe that the following blog can help you create the desired view.
Hope this helps!
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I think the blog article Patrick shared will not work in more recent versions of Tableau Desktop as it was taking advantage of the unexpected behavior of being able to click through a floating object, which has been fixed. In other words, if a parameter is covered by a blank worksheet and that worksheet is filtered out, the user will not be able to click the parameter because it is still covered by the floating container.
There are new workarounds to conditionally hide filters, see Unable to Conditionally Show or Hide Parameter Controls, Filters, Web Objects, or Legends | Tableau Software
However, it sounds like your question is slightly different. If the user selects A or B from the parameter then the filter should not only be hidden but the selection should be reset to (All). Currently parameters are unable to set the selected options in a Filter. You may try something like Clearing All Actions in a Dashboard with One Click | Tableau Software to make the work flow easier for your users.
Hope this helps!
When 1 = 1...
Step 1 - Setup your parameter, with the addition of an 'all'.
Step 2 - Create your calculated field such as below
Step 3 - Build your viz and expose the parameter control
Step 4 - done. What occurs is when (in this case) each state and territory is selected, the calculated field will select it and highlight it. When All is selected, Tableau defaults to 'nothing is selected' mode, and displays everything.
Thanks for providing the additional context Esther!
The image seems to have not uploaded as expected to your post. Could you try re-adding it to the post?