there's no problem, there are just still some missing pieces.
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using SX5E as an example you either exchange delta if you want to give MM futures you already have, or they do the hedge ie buy or sell futures and adjust the option price based on the hedge . By the time option price hits the tape the hedge has been done. Slight difference in US
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but do they hedge for every single contract or to maintain their net book within X delta limit?
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Depends on MM. obviously they can take risk to a limit. But limits have become much smaller and tbf MM’s are not in the game to take massive delta risk (not saying they don’t clean the book EOD). Empirical analysis does support EOD hedging and rebalancing from leveraged EFTs.
End of conversation
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