I believe you are mistaken. SRM is definitely the SRAM dump which means the cartridge battery backup SRAM save file in the case of Gameboy, and that's why they appear in the SAVE folder. Everdrives uses different file extensions for different systems, but usually SRM is SRAM, EEP is EEPROM and FLA is FLASHROM. If there is only one type for the system they might be using SAV, I don't know. In the case of the Everdrive N8 (I don't know about the Pro) the save files have the same file extension as the roms, which is NES, but they are still just SRAM dumps.
I have confirmed this and they work in emulators as save files. They contain no data from the game rom.
I have the original Everdrive GB, and if I load Tetris or Super Mario Land for example, there won't be any SRM files for those games in the SAVE folder.
You are probably not wrong that the Everdrive acts up if you have a too large rom loading history, but I'm pretty sure that is fixed by reinstalling the OS or reducing the amount of save files in the SAVE folder. In other words, an SD card problem rather than the "Everdrive's memory being clogged up".
you could say the SRM is the same file size as the rom itself so imagine how many duplicates of the roms that get stored in the memory banks of the everdrive and it overrides the system...
No they can be the same size, but the SRAM is usually up to 128kB in size for Gameboy games, while a GBC ROM can be up to at least 4MB. What do you mean by memory banks of the Everdrive? Overrides the system? What is overriding it and to what effect? Everything is stored on the SD card. Only the game you play is copied to the ROM memory and its save file to save memory, that's only one game at a time. The EDGB X7 supports up to 8MB ROM and 128kB SRAM, so there's not even room for more than one game if it's big enough.