@create-figma-plugin/utilities/lib/node/is-within-instance-node.js

An extensive library of utility functions for common Figma/FigJam plugin/widget operations

export function isWithinInstanceNode(node) {
    const parentNode = node.parent;
    if (parentNode === null ||
        parentNode.type === 'DOCUMENT' ||
        parentNode.type === 'PAGE') {
        return false;
    }
    if (parentNode.type === 'INSTANCE') {
        return true;
    }
    return isWithinInstanceNode(parentNode);
}
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